Should You Grow Your Business Or Leave It Be? A Real Concern to Consider

Figuring out whether you should expand your business or leave it alone is always a challenge. Should you invest now in new buildings, locations and staff, or should you accept your current level of profitability? 

Most business gurus preach that businesses need to expand to thrive. However, if you look at the world around you, that’s not always the case. The vast majority of firms get on fine without constant expansion.

Are you planning on growing your business? Ask yourself the following questions first: 

Do I Have The Right Partners? 

Some businesses can expand under their own steam, but they are the exception, not the rule. Most firms need partners in place first before they begin growing their empires. 

For instance, if you want new locations, you’ll need to work with commercial builders who understand business requirements and fit outs. Ideally, you should already have a couple of pilot projects under your belt before you proceed to large-scale rollouts. 

Am I Already Successful? 

The next question to ask yourself is whether your current success is enough. In many cases, you don’t actually need to take the risk of expanding your business if your lifestyle is already what you want it to be. Why put yourself through the stress? 

Why Do I Want To Grow?

You can also explore your motivations for why you want to grow. If the answer is just to get rich faster, then you may struggle to succeed. However, if your answer is to ensure that more people can benefit from your fabulous products or services, then you are much more likely to succeed. 

In general, it is better to have a mission larger than yourself driving you towards success. Selfish motivation will only get you so far. 

Do I Want To Manage More People? 

Growing your business typically involves needing to hire more people. You can sometimes expand by investing in machinery, but most modern firms require human beings to do the work. 

Be honest with yourself: do you really want to hire more people? If the idea of managing an extra dozen staff fills you with dread, expanding your business might not be the right option for you. 

Is My Business Profitable? 

Whether you’re making money right now is also another good indication of whether you should expand or not. In general, the more money you’re making, the more you should consider expansion. If nearby customers are benefitting from your services, so too will those further afield. 

To take an example, let’s say that you had to spend $100,000 to make $600,000. In general, that’s a good return and shows that the market wants more of what you have to offer. By contrast if you had to spend $800,000 to make $900,000, then your profit margins probably don’t justify rapid growth. 

Is Your Work Enjoyable? 

Finally, ask yourself whether your work brings you the kind of satisfaction you want from your life. Earning money is good, but if you don’t feel fulfilled in what you’re doing, then it could feel like wasted energy. 

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