Business expansion is an exhilarating time for any company and is an indication of the excellent work performed by you and your team. However, it is also probably the most challenging phase through which your company will go.
For successful business expansion, numerous factors must be taken into account, including streamlining workforce processes for better productivity, budgeting overhead costs like office rental fees, recruitment costs, and managing employees during the transition while maintaining their morale. Ignore any of these aspects, and you run the very real risk of adversely affecting productivity.
Here are five tips to successfully manage your business expansion:
1- Mind the Pennies
A significant part of managing business expansion is having an excellent understanding of your finances and using a combination of planning and forecasting to ensure that the growth will bring positive results. Who better to help you manage the accounts of your business at this crucial juncture of growth than a competent, professional accountant for small business.
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Small companies undergoing a growth period experience challenges and financial considerations that differ from larger firms that will likely have in-house accounting staff. Until you reach that point, external assistance is likely to be your best option.
2- Delegate for Success
It is tempting to micromanage and handle all aspects of your company’s expansion on your own. However, the constant decision making and troubleshooting as your business expands can be overwhelming for a business owner.
For the smoother operation of your business, it is essential to delegate tasks. Analyze the strengths of your employees, and pick a capable team of individuals that are able to take on and independently manage specific functions that you have assigned to them.
I’d like to add the following sentences: It’s not uncommon as your business expands to encounter challenges outside of your team’s skill-set. Partnering with organizations that have expertise in those areas can save on both times and the expense of making costly mistakes. For example, delegating your international HR services to a Global PEO is a way to ensure your company’s compliance in new markets with complex labor laws and regulations and keep your business running smoothly.
3- Budget New Expenses
Business expansions usually mean additional expenses to bear for the company, including hiring new staff, and overhead costs of new offices, among others. Before planning for an expansion look at your company’s accounts, figure out how much can be put aside to meet these costs and prepare a budget to which you will strictly adhere.
Additionally, ensure that you allow for some additional, unforeseen expenses that might come your way. Frequently seek reports from your finance team about expenditures to make sure you are not overspending.
4- Start Slow And Be Realistic
It is easy to get excited when the company is expanding, and feel the urge to promise more to clients than you can deliver. Instead, start slow, and introduce new products one by one. Gauge your clients’ – both old and new- reactions, and get their feedback. Proceed to create more products and services, and expand to newer territories only if the initial batch gets customers’ approval. Taking proper feedback can help you plan a better and more informed expansion.
5- Boost Employee Morale
It is easy to forget to about your employees while in the midst of an expansion. Unlike senior management, they are not part of the core decision-making process, and changes to the status quo can affect their day to day lives profoundly. It’s crucial to keep a close watch on your staff to ensure that morale and job satisfaction remain high while your organization is in transition. Have regular meetings with your team to assuage any fears or concerns they have and remind them how vital their contribution is to the growth of the company. Remembering to thank your employees during such a challenging phase will motivate them to work harder to make the expansion a success.
Business expansions are exciting yet challenging, and with a little bit of planning, you will be able to take your company to great heights.