I always advise people to start small when putting up their own business for the first time.
“Keep it simple so it would be easy to manage,” I’d say.
Not only does this cost less, but it also gives new business owners the proper time to nurture an entrepreneurial mindset.
Then after some time, usually within a few months up to a couple of years – when the business is already stable and running smoothly, then it may be time to start growing or expanding the business.
But how exactly do you do that? This 3-part article series is all about this topic, and we start today by discussing the three main reasons for expanding a business.
3 Reasons Why You Should Expand Your Business
Because you want more money
This one’s quite obvious – of course, the bigger your business is, the more income you could earn.
However, one should remember that expanding your business would most likely result to an increase in operating expenses. And in the end, despite the higher gross income, your net profits could just be the same.
It’s important to do the Math first before expanding your business for this reason.
Because your competitors are expanding
No business wants to get left behind by their competitors. So if they’re growing their business, that may be a sign that you should too.
But before you go ahead and spend on your business expansion, do market research first and justify the decision to grow. It is certainly possible that your competitors are committing a mistake.
Without a new or bigger market for your business, income will remain unchanged and your business will possibly fail to sustain the growth.
Because expanding enhances your original vision
Successful entrepreneurs are always driven by a vision. They’re not just out there to make money, but also to make a difference – and that mission is what they continually focus and work hard for.
Personally, I consider the last one as the best reason for growing your business because it’s anchored to a desire to help and serve others.
Take an “ordinary chef” as an example, who opened a restaurant simply because he wants to make money from his recipes.
Then consider an “entrepreneur chef”, whose vision is to bring families closer together by putting up a restaurant where they can spend time and bond over a delicious meal.
When both decide to expand their business, who will most likely have the greater determination, and probably the better chance, to succeed?
Are you planning to expand your business? If so, which among the three is your reason? Or is it two or all of the above?
Knowing why you want to grow your business is the first important step.
This ends Part 1 of the series on “Growing Your Business”. In the next installation, I will give the three biggest obstacles in expanding a business. See below for the link to Part 2.
Growing Your Business Series:
- Reasons For Expanding Your Business: Growing Your Business Part 1
- Overcoming Obstacles in Business Expansion: Growing Your Business Part 2
- How To Expand Your Business: Growing Your Business Part 3
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