Whether you want to open a second location for your restaurant, expand your web design firm into a bigger office (new hires included), or just want to serve bigger clients and jobs, growth is the goal of nearly every business. Entrepreneurs have an innate desire to try new things in hopes of expanding their business, but it isn’t an easy process.
Business expansion comes with a lot of risks and challenges. To be effective, owners must balance executing new operations, managing organizational change, and ensuring proper funding of the growth strategy and daily activities. That’s why expanding a business too quickly or in the wrong direction is one of the most common reasons for small business failure in America.
However, it doesn’t have to happen to you! We put together a few common traps, pitfalls, and growing pains for developing small businesses, as well as tips and mitigation strategies to help sustain growth.
ISSUE #1: Misunderstanding and Misjudging Scale
As happy as you might be to move into a bigger restaurant or office, your business is going to face far more (and vastly different) problems. Changes in rent, location, customer volume, staffing needs, and supply chain can impact your breakeven point, business goals, and ultimately the way you handle daily operations.