Expanding your startup is usually not the end goal but a means to this end. You see, in order to increase your profit, create a legacy, gain more respect or even get more money when selling your enterprise, you need to ensure its growth. This, nonetheless, is not a simple thing. What you need to do is know how to get your enterprise to this crucial point. With that in mind and without further ado, here are the top five tips to help you expand your startup.
1. Don’t rush it
The first mistake that the majority of startup owners make when it comes to the issue of expansion is rushing too far ahead. You see, by accepting more work than you can handle, you will push your startup into one of the negative outcomes that you won’t be able to handle. First, you can fail these tasks, thus being forced to pay fines and ruin your reputation. Second, you will lower the quality of your work, which might just be the thing that has made your enterprise so special. Finally, you could put too much strain on your staff, thus hurting their productivity and lowering the chance that you’ll keep them as employees in the long run.
2. Focus on cash
The next thing you need to do in order to properly grow your business is to focus on cash payments. What this means is that you need to consider the likelihood that your customers will pay in account receivables or invoices, which means that you’ll have to wait until you can collect on your profit. The problem with this concept lies in the fact that this often leaves you short on cash. In order to solve this issue, you can either incentivize your customers to pay in cash or create new options in your offer, those that will bring in cash payments.
3. Providing additional capital
In order to grow your business, you need to burn some cash. You need to hire more people, train them, invest in new equipment, move to a bigger place, as well as do a couple of additional things in terms of growing your infrastructure. However, in order to do any of that, you need to provide your team with some additional capital. So, start looking for new investors, potential loan offers or other ways of funding. Also, start considering your own eligibility for any of these things. For instance, if a new loan is your first choice, you should look for a credit score comparison platform in order to see where you stand.
4. Flexible workplace
In order to expand your startup, you’ll need to hire more people; however, this also means providing more space for all of these people. The first method that a lot of startups use is moving to a larger office. Such a move, nonetheless, tends to be incredibly expensive and even complex. Why complex? Well, mostly because it raises a question of how big of a place. It’s only logical to go for something larger than you currently need so that you can expand over time, nonetheless, this can also be quite problematic, due to the fact that it means paying more for the office space in question.
What is more, you can also sublease the space that you’re not using or opt for an alternative like getting shared office space for those few additional employees that you intend to bring on board. Aside from this, you also get to hire freelancers online. In fact, hiring remote workers is an incredibly useful method of expanding your team on a budget.
5. Start outsourcing
One of the best boosts to your company’s expansion is to start outsourcing all those necessary tasks that you can’t adequately solve on your own. First of all, you get to outsource departments like HR, IT, customer support, as well as your legal services. Truth be told, chances are that you’re outsourcing your accounting from day one but now might be the time to hire a seasoned financial advisor, as well. This way, you’ll get a plethora of experts and advisors on your side at a price that even your startup can afford.
The very last thing worth keeping in mind is the fact that expanding your startup needs to be planned, organized and executed in the most efficient way possible. This is why you need to find solutions that are scalable and those that you can control with ease. Bear in mind that there’s no rush to how quickly you should wrap all of this up. So, take your time and try to do everything right.