The goal of many small businesses is to expand and reach more customers. This often requires your business to expand and hire more employees. Reaching the point where you need to think about expanding your business is exciting and a little unnerving. Business expansions bring with them unique challenges. However, if you plan for the unexpected, you will improve the chances of keeping your business running smoothly through the transition. Expansion may also involve custom engineering and construction, new locations, and changed hiring practices. Here are just a few of the ways small businesses can save on expansions.
Moving to a new location or expanding the size of your current location is going to bring unique expenses. You can keep these expenses to a minimum if you have a simple plan for your business expansion.
First, start with a high-level plan that outlines your intentions. From there, create detailed steps of how you expect to expand. For example, your plan may be different depending on whether you are expanding in your current location or in another location.
Are you expanding your factory? You will need to think about things like design, layout, procuring equipment, and hiring professionals, like those who offer rigging services. Other factors to consider would be the need to temporarily relocate staff or hire new employees during the expansion process. You will also need to ensure that the surrounding area is safe for construction workers and third party workers.
Your plan will need to factor in events that will take place after the expansion. These plans can be shown to financers and other company leaders to convince them of the need and the viability of the expansion. You should be able to show how the expansion will increase revenue, the steps that will be taken during the implementation of the additional space, what the growth process will be, and what maturation will look like.
Identify who will manage specific processes during the expansion activity. Their roles should be clearly outlined. What experience and expertise are they bringing to the table? And how will their experience help the expansion happen on time and within budget? If you need to hire additional contractors to complete the project, you should put in writing what you expect from each of them.
When identifying leaders, go beyond those who are taking the lead in construction or finance. Think about the marketing department. With most expansions, organizations are looking to reach out to target a new market, a new demographic, or even other countries. You want to use social media and other tools to layout your marketing plans and build enthusiasm within your client base for the expanded features you will offer.
If you want to save on custom expansion projects, you need to start with a realistic budget. Your budget should include actual costs and then factor in an additional 10 to 15 percent for unexpected costs. The number one cause of expensive expansions is unforeseen costs because of a failure to plan.
Expanding your business is an exciting prospect. By being realistic, identifying leaders, thinking beyond the expansion, and taking steps to plan for the expansion, you can keep costs down and make the project a success.