Q: I have a small business and am thinking about expanding this year. Do you have any advice? – Entrepreneur Minded.
A: Dear Entrepreneur Minded::
Many of the same pitfalls that plague new business startups are present when expanding. Keep these guidelines in mind:
- Make sure the business you are in is profitable.
- Love what you are doing. If you are not passionate about it, don’t do it.
- Cash, cash, cash! Do you have enough cash flow and reserves to expand? Resist the temptation of more credit than you can handle.
- Is your service or product priced right? If you miscalculate pricing you may not be around long. Don’t be the cheapest, be the best at what you do.
- Delegate, delegate, delegate: You can’t do everything yourself. Surround yourself with good people you can trust.
- Build a large base of customers. You must diversify or be at the whim of too few customers.
- Marketing! Everyone thinks they can market. Wrong. Consult with experts who know the Internet and social media.
- Fast feet. Just because something works for a year, don’t assume it will continue forever. Stay on top of business and tech trends and be willing to fine tune as you go.
- Focus: Success depends on specialization. Pick your niche and dominate it.
- Location, location, location. When you first start or are expanding, you want the fanciest location and the largest suite. But be realistic. Time your physical expansions when it makes sense with all the other business components.
- Knock on wood. Good luck!
We offer a complete spectrum of legal services for businesses and can help you plan for your business expansion. Ask a Creative Business Lawyer® about a LIFT Start-Up Session, which includes employment structuring, financial, and tax systems you need for your business.
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