Important Considerations for Scaling Your Small Business
Being a small business owner is hard work. In my 30-plus years as a business law attorney, business owner, and Certified Public Accountant (CPA), I have learned many lessons. One of these is that an entrepreneur must always be thinking of new and creative ways to find success. If you are a small business owner like me, you are probably constantly thinking of ways to grow your business. You are likely searching for more opportunities and ways to expand your customer base and increase your profits. Of course, there is no one-size-fits-all business plan which will suit everyone, but these general guidelines are a good starting point for small business owners who want to expand their business.
Focus on Your Bread-and-Butter
Which of your products or services are customers most likely to purchase? Do you have loyal customers through which most of your profits originate? Although it can be tempting to want to find new and exciting ways of making money, it is important not to forget about your primary profit-making hubs. Examine your financials to determine where your biggest sales come from and who your most loyal customers are. Taking care of these customers should always be your first priority.
Do Not Put All Your Eggs in One Basket
Although your most profitable products or services and most loyal customers should be a priority, there is also a risk in focusing solely on these factors. Being dependent on only one or two revenue streams is dangerous. It is usually prudent to find several sources of revenue in order to ensure that your business will continue to successful even if the market changes, you lose customers, or your most-profitable revenue stream is no longer lucrative. A crucial rule is to concentrate on only one new direction at a time. Small business owners must walk a fine line between spreading themselves too thin and becoming stagnant.
Consider How You Can Finance Growth
Business owners must choose a business strategy that is effective but also one that they can afford. Things such as marketing activities, new staff, and inventory require money in advance. How will your business pay for this? Business owners who finance growth through their own revenues may avoid serious debt but will grow at a much slower speed than those who take out loans. However, loans can sometimes lead to a slippery slope of debt and obligations which become nearly impossible to keep up with. Other business owners find investors, but that can be time consuming and may require owners to give up part of their company’s ownership. Small business owners must first decide what kind of financing is right for them and then develop their growth strategy accordingly.
Contact Us for Guidance
There are many things to think about when you are looking to scale up your small business. The good news is that we are here to help. For reliable legal advice from a skilled Naperville business attorney, contact the Gierach Law Firm. Our team’s assistance can help protect and grow your business in way that promotes long-term stability and profitability. Call us at 630-756-1160 to schedule a consultation today.