For many entrepreneurs, the temptation of expansion will be ever present throughout their business’ life-cycle. However, expansion shouldn’t be taken lightly.
In order to grow your business into the industry heavyweight, you’ve always envisioned, in-depth strategic planning and the alignment of several key factors is required. Between possessing an all-star team, high customer demand and being in a strong financial position, your empire will be governed by a number of issues which can make or break a successful outcome. If you are considering expansion this year, ask yourself these questions to help decide if you are in a position to take your business to the next level.
Do you have a superstar team?
Your employees are the cogs that keep your business turning. A core team of capable and driven employees who are prepared to take the next step is essential.
When building your expansion strategy, it’s vital you analyse your current and future staffing requirements. Take stock of your current team and ask yourself: Who will be in senior management in five years? Who is capable of extra responsibilities? Who may hold you back?
If your current employees are not sufficiently prepared for and capable of expansion, both your employees and business will be placed under immense pressure which is not conducive to long-term success.
Make smart business choices that are beneficial to your business both now and in the long term. Are your key staff being held back by admin and other basic tasks? Or are your finances restricting you from hiring skilled employees in locally? One avenue companies are reaping rewards in is by outsourcing to the Philippines. By onboarding a skilled and reliable offshore team to handle back-of-house duties, your key staff can realign their focus to an upcoming expansion.
Are you able to fulfil your customer’s demand?
Having a stable customer base is non-negotiable. Your customers or clients will be an indicator of whether your business is ready for growth. Expansion requires a high demand for your product or service. However, it’s important to ensure your decisions are based on long-term data and not on short-term spikes in demand.
Satisfied and loyal customers will not only guarantee consistent revenue but they will also provide valuable feedback. If your customers are crying out for increased access to your product or services, then expansion may be essential for your business’s survival.
How is your business financially positioned?
Any business decision will be governed by your business’ financial sustainability and forecasts. Remember, expanding could be an extremely expensive venture, with a number of unforeseen costs. Being financially viable will allow your business to absorb financial surprises that may arise.
Continual economic growth over a sustained period of time, discounting any uncommon dips or spikes, is the best indicator that expansion may be realistic. Ensure that you are focused on the big picture, not the variations in economic performance.
Having a good understanding of your financial viability will outline the expansion options available. It may also make you more attractive to potential investors or gain financial backing easier.
What is the outlook for your industry?
Understanding your market’s current and future position should play a major role in designing any potential expansion strategy. What’s the market’s current and projected trajectory, analyse whether it’s forecasted to grow, plateau or decline. Clearly expanding in a growing market will be more conducive to a successful outcome. However, if it’s experiencing a downturn, reevaluate your options.
Another option to consider is expanding your product or service line, instead of physical expansion. Creating a new market offering may be a smarter way to expand in a declining market. Taking this route, may increase the long-term sustainability of your business and make it easier to physically expand in the near future.
There are many factors that require careful consideration before expanding your business. Being in a position to expand is a success in itself but it is equally as important to have the courage and trust in your abilities to take your business to the next level.
Deployed has helped businesses in New Zealand and Australia successfully expand by offering an alternative to staffing requirements. By setting up an offshore team in the Philippines, all time-consuming tasks such as admin and payroll can be outsourced to allow your core team to focus on helping your business grow.
Outsourcing with Deployed also helps to remove some of the financial burdens that come with expansion. We can connect you with skilled and experienced specialists that you may not be in a financial position to hire locally. From software engineers to marketing strategists, it’s the salary levels that are lower in the Philippines, not the capabilities.
If you would like to explore how Deployed can help set your business up for long-term success, contact us today.