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We\u2019ve had our business for a while and the business is doing great- what are our next steps?<\/p>\nWe\u2019ve had our business for a while and the business is doing great- what are our next steps?<\/p>\n
Expansion<\/strong> Expanding your business can be a very exciting time but also open to many pitfalls Some of the key criteria will be:\u00a0budgets<\/strong>\u00a0and\u00a0cash flow<\/strong>\u00a0\u2013 yes you can have a very profitable company but if you do not map out your plan for the future, and your cash flow cannot keep up with your expansion you are doomed to failure. Budgeting<\/strong><\/p>\n Yes, most managers hate budgets \u2013 but used correctly a budget is a great tool to help guide you through the\u00a0down times<\/strong>\u00a0and ensure you reap the benefits when business picks up. So now you have a good idea of your trading year \u2013 including the highs and lows. Now get ready to use this budget to help plan for your expansion. Note that creating several budgets that take into consideration diverse scenarios can help you build a clear picture of what you want for the future of a company, for instance;<\/p>\n \u2022\u00a0Acquiring<\/strong>\u00a0another business will give you that instant hit of expansion but will also be costly as you will be paying for this upfront. If you are\u00a0diversifying<\/strong>, then you can change your\u00a0business model<\/strong>. If your\u00a0revenue targets<\/strong>\u00a0are not as you envisaged \u2013 work out your\u00a0break even point<\/strong>. Ascertain which areas are trading well and which require improvement. Calculate when you need to bring in more staff or buy that equipment.<\/p>\n Keep tuned for our next blog and understand why cash flows are important and how to work around them through the expansion of your business.<\/p>\n","protected":false},"excerpt":{"rendered":" We\u2019ve had our business for a while and the business is doing great- what are our next steps? Expansion \u2022 How do we go about this? \u2022 When is the best time to do this? \u2022 Should it be organic growth or do we acquire another business? \u2022 Do we stay with our\u00a0core business or […]<\/p>\n","protected":false},"author":1,"featured_media":2295,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[],"class_list":["post-2285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"\n
\n\u2022 How do we go about this?
\n\u2022 When is the best time to do this?
\n\u2022 Should it be organic growth or do we acquire another business?
\n\u2022 Do we stay with our\u00a0core business or diversify?<\/strong><\/p>\n
\n\u2022 What happens if we expand too quickly?
\n\u2022 How do we ensure that we have enough\u00a0working capital?<\/strong>
\n\u2022 How do we know when is the best time to take on\u00a0new staff<\/strong>\u00a0and\u00a0equipment<\/strong>\u00a0to facilitate the expansion process?<\/p>\n
\nHow do we avoid this happening and set ourselves up so we are in the best possible position?<\/p>\n
\nAs an example, a 12-month budget will help you ascertain where the peaks and troughs are for your\u00a0business life cycle.<\/strong>\u00a0This can then be turned into a rolling budget, allowing you to have 12 months budgeted always. By comparing your\u00a0actual to budget<\/strong>\u00a0figures monthly, you will begin to see how far off the mark you are. Having a close budget to actual scenario is a clear indicator of knowing very well your business.<\/p>\n
\n\u2022\u00a0Incorporating organic growth<\/strong>\u00a0into your budget will allow you to grow at your own pace but will take longer to reap the benefits of the expansion<\/p>\n