Growth may be the lifeblood of all businesses, but there can be a danger in expanding too quickly. How fast is too fast? Help your company thrive and survive by making sure you’re able to create sustainable business growth.
Know your true costs
Before making moves to grow your business, you need to be confident that you can fund the expansion. First, you need a good grasp of your working capital needs and what funds are necessary for your day-to-day expenses. This will help you project and prepare for costs that you may otherwise neglect to factor in.
It’s also important to look at more than your invoice statement when you’re assessing the financial health of your business. Before attempting to grow your business, ensure you’ve also taken metrics such as available cash, status of accounts receivable and inventory into account. You need to know how growth will impact your cash burn and whether you’ll survive it.
Modify your infrastructure
The informal arrangements and loose infrastructures that work for a small business could cause major problems for one that’s growing. Take the time to create and tie down processes for everything from billing and invoicing to training and hiring new staff.
When hiring, you also need to consider the ongoing costs. You will need to bring more staff on board to support your expansion, but you may be better off hiring only a few core team members and outsourcing as many of your non-core functions as you can. This will help you manage costs and ensure that the staff you do hire will be valuable members of your crew.
One excellent way to allow your business to expand without damaging your bottom line is to turn to serviced offices. Perfect for providing you with all of the equipment, space and admin help a thriving business needs, a serviced office also has the benefit of a flexible price tag. Alternatively, work remotely with virtual office packages and take advantage of a prestigious address and professional receptionist wherever you’re based.
Rather than investing a large amount of your capital in office space, choose a serviced or virtual office with a flexible contract that will allow your business the freedom it needs to grow at the appropriate speed. To hire office space in Melbourne, Sydney or any other major Australian city, call Servcorp on 1300 685 612.