If your sales have reached the point where demand exceeds supply, you know it’s time to expand business. But expansion comes at a cost. You may be wary of any financial risks you could incur. So here are three areas to consider when growing, and some advice on how to do it right:
Getting Funding for Your Expansion
You may choose to expand business through your line of products. Or, you need to move to a bigger building to accommodate your growing workforce. It could mean opening a second location to satisfy demand. Whatever your circumstance, you will probably need to obtain money to fund that expansion. Small businesses sometimes rely on family and friends to help them with funding. But they also have access to small business loans from their banks. Investors are also a good option to help you with growth.
Whatever option you pick, Corporate Finance Institute suggests preparing a financial model explaining what the money you’re borrowing is for. Have all your financials in order. Be ready to show your business’s income and expenses so that your investors feel confident helping you. Ensure that all outstanding invoices get paid in a timely manner to improve cash flow. Grab the attention of your customers with a professional-looking invoice. Ensure it contains all the important information regarding payment terms and payment methods.
Marketing During Expansion
It’s important to not neglect your marketing strategy as you’re following your plan to expand business. Elements of this strategy are digital marketing. More traditional methods are flyers or business cards. A business card leaves a lasting impression. It is more visible than email, and offers potential customers and clients something tangible to remember you by. When you design business cards, you’ll find that it’s simple when you use pre-made templates that you can customize. Add company images, text, color schemes, and the font of your choice.
Adding to Your Existing Workforce
Here are some things to consider if your business doesn’t have a dedicated HR department. The process of looking for, screening, and recruiting new employees may be yet another task falling squarely on the owner’s shoulders. If your budget is limited, you can advertise the position you’re looking to fill on online job posting sites. Optimizing your job listings by including keywords will help job seekers find your posting based on their matching skills and experience.
You may also consider going through a staffing agency to find help for your business. Some of them specialize in specific industries, so, as Sentech points out, they’ll be able to recruit the perfect candidate for your needs. Another channel to consider for finding new hires is asking your existing employees for referrals. The advantage of this recruiting strategy is that your existing workforce already knows what the job entails. Your employees have a vested interest in finding the best colleagues to help them reach the company’s goals.
Finally, contact your local collegiate, vocational or trade schools. Some of their students may be perfect candidates for the jobs you’re offering.
Onboarding Your New Employees
High turnover rates can cost businesses a lot of money. Once you’ve found the perfect hires for your company, you want to make sure they don’t leave shortly after being onboarded. So many factors contribute to this such as poor communication with colleagues and higher-ups. So here are some steps to follow to ensure your new employees stay with you for the long haul. Once they’ve accepted your job offer, send them all the forms they need to complete. Make sure they know what documents they need to bring to HR on their first day.
Prepare their office or workspace for their arrival. Install all the equipment they’ll need, and ensure everything is working properly. Assign a mentor for each new hire. That person will be responsible for introducing them to their co-workers, answering their questions and helping them navigate their new work environment. And last but not least, lay out your expectations. Clearly explain the role your new hires will play within the organization. Making them feel part of the team from the start will go a long way when it comes to worker retention.
To expand your business, it can be both exhilarating and scary. It’s a sign of positive growth, but it’s also fraught with uncertainty and what-ifs. So make sure you get the best people on your side to help you reach your objectives.