Enterprise growth is realized when a business becomes successful in what they are doing. In some instances, entrepreneurs control the growth paradigm, other times, however, the growth pattern takes a path of its own. Once a business starts doing well, the business owner will have to consider the possibility of relocating their business into a larger office space. The nature of the current working model illustrates that home-based working can be a useful way of establishing enterprises from the ground up.
Moving into larger commercial spaces provide numerous long-term benefits to a small business in any industry. Below are some indicators that entrepreneurs may experience when it is right to expand your office space by leasing a larger premise.
Answer: Growth in business income matters, but workforce growth is the number one factor
The most common indicator that it might be the right time to relocate into a larger business space is the need to hire a larger workforce. It is unlikely that entrepreneurs will let some of their staff members to work from home; it is also not likely that business owners will allow a large workforce to squeeze in one small room. A growing workforce is one clear indication that an entrepreneur might need to find a suitable working space. Entrepreneurs might consider moving into a modern serviced office for example. This is because serviced offices are fitted with meeting rooms, fast internet connectivity, and services like snacks and tea, enabling your staff members to focus on building the business.
If a business is expanding its number of loyal clients and is also making a steady income that can easily pay bills such as rent, energy and more, then it might be a good idea to spend the extra revenue in increasing the workspace. In short, entrepreneurs should first find out if the business has had consistent profit growth over the past few years. Please note that it is important to understand the various ways through which profit is calculated to prevent the likelihood of getting the wrong picture of your company’s performance and making an expensive mistake. If there is real evidence that an organization has consistently realized tangible revenue, then the enterprise’s operations might need to grow.
An entrepreneur may notice a need for services or products that are related to his business. Diversification might be the answer to longevity in commerce, but the business owner does not have to abandon his main offer. For example, if a business offers legal counsel, the owner might realize that many clients also ask for company law advice. It might be, therefore, worthy for the entrepreneur to consider if there might be a way of adding those services to your portfolio. After all, the business has already established trust with its customers, and there might be no need to advertise widely. It is important, however, that entrepreneurs understand that it is not prudent to pin growth on one core sector or client.
The above is just a brief attempt to answer the highlighted question. There are many other useful resources around the internet that can assist any entrepreneur as well. Below are some recommended sources.
- All Business: All Business is a large online resource for small startups. The website provides resources and tools that can help business owners to start and grow their business. Additionally, the website brings real-world knowledge and practical expertise from some of the most skilled minds in the world of entrepreneurship.This particular article helps people see the signs that it's time to expand.
- Forbes: Forbes is a large media company that focuses on businesses, entrepreneurship, lifestyle, technology, and leadership. The website features numerous articles on investing, marketing, and finance. This article focuses on business expansion strategy when the time has been reached.
- Funding Circle: This company actually provides loans for businesses that are ready for physical or material expansion. The article in question is a number of different signs that expansion is not only a good idea, but potentially necessary for the overall health and success of the business.