usiness growth is part and parcel of running your own company, and being able to move it through its natural trajectory is something that many businesses can do and have done successfully. But there is also a fair share of business owners who have not anticipated growth or forced it before they’re ready.
So therein lies the issue. Surely, any growth for your company is a good sign, right? Not if your business isn’t ready, no. Rushing through your progression trying to get from A to C while skipping B can spell disaster rather than success for your business, land you in hot water, and be the kiss of death for everything you have worked so hard for.
While you might be ready to take the next step, you must also ensure your business is ready. And these signs are indicators that your business won’t be able to cope with any type of growth, no matter how hard you try to facilitate it.
Poor Cash Flow
Cash flow is a common theme in all businesses. Good cash flow can be a sign of success and good management and indicate how much more you can take on and achieve without letting the ball drop on existing operations. At the same time, poor cash flow should indicate the opposite.
If you cannot control your cash flow and aren’t putting projections, budgets, and forecasts in the palace, then the reality is any plans put in place to grow the business will likely fail. You need to be confident that you have the funds to operate your existing business at your existing capacity and fund new avenues and plans without running out of money. If you cannot guarantee this, it’s worth waiting until you’re in a better place financially.
The Data Doesn’t Support It
The data your company holds can be extremely influential in supporting plans for growth. In the first instance, you need to identify all of the data your company has or can collect; around 80% of data businesses have access to goes unused.
The data will help you to identify trends, patterns, behaviors, and more about our audience, your company, and your industry as a whole. Using tools like https://mosimtec.com/digital-twin-development-company/ can help you gain deeper insights into your business and support ongoing improvements and innovation. But without the complete data set or being able to interpret the data into usable information, chances are you’re simply moving forward blindfolded; is this a game you are willing to take?
Your Team Isn’t Equipped
If your team isn’t able to handle your current capacity, how will they handle an increase in workloads or sales? Sure, you can hire more staff, but what do you think a new set of employees will do if your existing team can’t do their job well?
You need to work with your team to ensure they have the right tools and skills, know how to do their current job well, and meet all of their workload to the deadlines you need them to. From here, you can test the waters by slowly increasing capacity to see how they cope, all while supporting them towards plans for eventual increases in operations.
But if you don’t do this, then not only will your future success be in jeopardy, but your current clients will suffer, too.
The Demand Isn’t There
Is there a demand for what you are doing or what you want to add to the business? You cannot create demand if the demand isn’t there, and it’s likely that if you try to push forward without any real indicators of demand or a gap in the market for what you are offering, it will be a waste of time, money, and resources.
Look at the current demand for what you do. Is it there? Can you look to increase your current success and corner the market before expanding? If you are already seeing great success in what you do, then identifying complementary areas can help you expand naturally and fill in the blanks for your customers. If not, it’s with putting plans on ice until the time is ready.
There are many times when the signs point towards you being able to pursue growth opportunities and push forward with new plans. But there are also many signs that this isn’t right for you at all or right now. Knowing how to identify these signs and looking at the warnings that expansion shouldn’t be your main focus can help you avoid making a big mistake and ruining everything you’ve worked hard for this far.
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