Expanding your business after having success is an exciting time, however it’s not something that should be taken lightly. The last thing you want is to reverse the success you’ve had and end up with less as a result of expanding your business. We’re here with four things that you must consider before you expand your business, to make sure you don’t lose money in the long run. From getting the right credit insurance brokers to assessing demand and thinking about the impact on current customers, proper planning when it comes to expansion may be time consuming but it’s also absolutely essential.
Is Your Product/Service In Demand In Other Markets?
The first thing you need to think about is whether or not your product or service is in demand in other markets. Whilst you may have had great success in one market, it’s so important that you do thorough research into other markets to make a decision based on data, rather than just thinking something might work. You also need to look at the market competition, as if another company already has a very well respected brand in a certain region for a certain service or product, you may need to rethink your expansion plan. Taking your time with this is key, to find markets that your business will be viable in, to avoid you wasting any time or money later down the line.
When expanding, you need to carefully assess every component in your supply chain. Assuming everything goes well with your expansion, your supply chain will likely be put under strain, so you need to ensure that there is room for those additional orders all along the process. Ensure you speak to all of your suppliers to ensure that with an increased demand everything will still run smoothly. For example, the last thing you want is for a warehouse to not be able to keep up with the demand, which could then have a knock on effect that impacts your current customers and puts them off the business. So, ensuring that your supply chain can process the highest predicted number of new orders is vital.
Getting The Right Cover
As you expand your business, you need to make sure you’ve got the right insurance cover. When your business evolves, so will its needs in terms of what it needs to be protected against. For example, if you’re beginning to trade internationally, particularly on a credit basis, then getting export credit insurance cover is so important. This is just one example, but you need to work with an experienced broker in your field to ensure you’re getting all of the right cover for your expanded business. You might think everything is going smoothly and you don’t need insurance cover for certain things, however a small investment in cover each month could be what saves your entire business one day when things aren’t going as well. Be sensible and get the right cover now and potentially one day it’ll be just what you need.