How do I know if it’s time to grow my business?
Sometimes, instead of encouraging clients to move forward with a great business growth idea, I’m actually asking them to pause and reflect on these four questions:
Is this timing good for my personal life?
If you’ve just had a big change or are going to experience a big change in your personal life, then you’ll want to decide whether or not you have the time, energy, and mental capacity to grow your business. Maybe you’re about to have a new baby, maybe your parent is sick, or maybe there’s been a recent death in your family. All of life’s big changes (even the good ones) can drain us and reduce our capacity to take on another challenge. Before taking on the next business goal, take a look at your personal life to see if this is the right time.
Is my business cashflow ready for growth?
Because business growth usually eats up financial resources, you’ll want to be sure the business cashflow is strong enough to get you through the growing period. Have you determined how much cash you will need to take your business forward? Do you have enough cash reserves, especially if the growth journey takes longer than expected? Poor cashflow when trying to grow a business can actually turn your business into a tailspin and can cause businesses to fold. Your goal for growth is to create a business that is stronger than before, so cashflow analysis is incredibly important before pushing for growth.
Are my customers needing my business to grow?
Maybe you’d like to open another location, expand your product line, or offer a new line of services. These growth scenarios might sound great, but you’ll want to be sure you’re not just making decisions on a hunch. Start with some internal analysis: Are you seeing high customer demand for your products or services? Are you sure your customers are interested in your growth idea? Before deciding to grow, talk with your customers; really talk with them to learn what they want or need. Then consider some help from an expert: How can you test the new idea before launching? Consult with an expert regarding market research and customer surveys to determine the level of customer demand. Now is the time to determine if your current and future customers will support your business growth.
“Before deciding to grow, talk with your customers; really talk with them to learn what they want or need.”
Do I currently have the stamina for growth?
Robin Sharma, one of my favorite motivational authors, has a saying, “Change is hard at first, messy in the middle, and gorgeous at the end.” When growing a business to the next level, we expect things to be hard at first and we believe we’ll reach the gorgeous end, but it’s the messy middle that throws us. It’s the messy middle that is long. It’s the messy middle that makes us want to quit. The messy middle is when we’ll need to push the hardest and when we’ll need the most stamina to reach our business growth goals. Why? Because growth always takes longer than we think it should. And, when it takes longer, we start to question ourselves and we start to search for shortcuts, only to realize that this journey is going to be longer and harder than we thought. The good news: The entrepreneurs who push through the messy middle are the ones who experience growth and success. The messy middle is worth it. We just want to have the stamina and determination to push through.
We’re all about helping businesses grow in a smart and strategic manner.
Taking a short pause to evaluate the timing and potential hurdles to growth will increase your odds of success.
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