Running a small business is both filled with joy and worry. As your business enjoys success you might start to consider opening additional locations or broadening your products or services. Before you make the jump to expand lets take a look at some of the pros and cons of scaling your business.
First, lets start with the pros of expanding. Scaling your business means you will look into adding more locations or additional products or services, which can mean additional revenue each month. You will also serve a larger base of customers. These additions will lead to more complicated bookkeeping, but QuickBooks Point Of Sale can help you manage it all.
An expansion will also lead to a larger professional network, which will help broaden your professional horizons. You will also grow as an entrepreneur because whether your business thrives or not, the lessons you learn from your expansion will help you become a better business owner in the long term.
Another of the big pros to scaling your business is that more growth means more visibility. Growing businesses attract positive attention from both customers and fellow businesses alike. That positive attention could even lead to a new partnership that could be lucrative for you in the long run.
Now, while growing your business might sound like an attractive option, we also need to discuss the cons of scaling your business.
Growing your business will mean you need to spend even more hours working each day. If you’re already struggling to spend enough time with your family, additional growth would only make that work-life balance more difficult to achieve. Even if you hire additional staff to help, being the owner means that the more successful your business becomes, the more hours it will take to keep it all going.
Business expansion is also costly and it takes time to see results from your new efforts. You will need to keep in mind that your business systems most likely aren’t designed to support a larger business infrastructure. If that’s the case you will need to look closely at your software systems, fulfillment processes, and HR procedures before making any big moves. Big growth without proper infrastructure could lead to disaster for your future.
The biggest con to scaling your business is that growth is always risky. Move forward carefully and make sure you have a realistic budget in place that can handle the increase in expenses. You might discover that your business can’t handle growth, especially if it occurs to quickly.
Hopefully this article discussing the pros and cons of scaling your business will help you make an informed decision before jumping into an expansion. Weigh all the risks carefully so that you don’t dive straight into disaster.