It’s exciting when your company is growing and expanding. Sales are increasing. Additional employees are needed. More equipment is needed. This is all great news for any business, but you want to make sure you don’t move too quickly before you’re in over your head. Here are a few helpful tips to help your growing company expand smoothly.
Is the business going to keep growing or did you just receive a few additional contracts for a short period of time? If you’re not sure, it might be better to find some temporary employees or subcontract some of the work out to other companies.
Hiring full-time employees is an investment. Make sure to weigh out the advantages and disadvantages of hiring full-time employees versus getting temporary help. If your business forecast looks like it’ll continue to increase, then it might be time to hire more employees.
Again, is the business load going to keep increasing or is the increase in work only going to be for a short time? If it’s only a short period of time, you may be better off renting the additional equipment needed. If you’re projected to keep expanding quickly and you have the credit to obtain an equipment loan, purchasing might be the best option for you. It’s important to look at your financials, your current contracts, and your future business plan to see what’s right for you.
No matter if the increased growth is short-term or long-term, it’s important to have a financial cushion to pay for the increased work you’ll be doing. Although your sales are going up, so are your expenses like payroll, supplies and other operating costs. Many industries have slow-paying customers, making it difficult to keep up on daily operating expenses.
Depending on your business stage and financial status, one funding option might be better than the other. Compare business loans and factoring to see which one is right for you.
When you’re growing rapidly, it can be difficult to keep up on all of the back-office administrative duties. Sometimes, it can be more beneficial and cost-effective to outsource some of the work so that you can concentrate on other tasks.
When your business is expanding rapidly, you’ll need some additional resources. Whether this is employees, equipment or office supplies, look at your internal resources to see what (or who) you can repurpose for your new needs.
It’s important to consider these five items to make sure you’re ready to take on added business. Nothing is better than a growing company, but it’s essential to be prepared.
TCI Business Capital is an invoice factoring company serving businesses across the United States. For more information on factoring, call (800) 707-4845 for a free, no-obligation consultation and quote.