You’ve leapt before you can walk, tripped over your finances and plummeted into a sea of debt – and that’s your business over and done with.
Indeed, expanding your company beyond its means is always tempting. If you’ve got the ambition of an entrepreneur, then reining in your budgetary constraints can be a strain.
But thousands of companies every year fold because they grew too fast.
With that in mind, what steps should your business take when they’ve got the right funds?
Make the property jump
Maybe your business is in the throes of an online boom. As you send out packages from your bedroom, you might think, “I need some room to do this properly.”
But hold your horses, you little entrepreneurial wizard. There are thousands of viable shops for sale in the UK, and only a few that will suit your company.
Before you head into the big leagues, make sure you have enough cash to cover a sizeable sum of rent. Next, consider the location of the property you desire. Is it located near your core client base? Is it sizeable enough for your needs? Will it prove too costly in the long run?
Even a booming online business needs a decent workspace. So, invest in the best – when the time is right.
Who to hire – and when
If you’re working on your own, slogging through long hours in your room, then the need for an extra pair of hands will soon make itself known. But employee wages are the largest outgoing of any business, so just one employee could stop your fledgling company dead.
While you build a successful home enterprise, see if you can bring a friend who’ll work gratis until you can find the change to pay them.
If you can justify it, you could even bring someone in on work experience and, if they’ve got the chutzpah for good business, bring them on board fulltime when you start turning a profit.
Finding the right employee is great. But without the shrapnel to pay them, your business will sink like a stone.
Know your limits
You might picture yourself as a Richard Branson-type, trimmed goatee and all. But not every entrepreneur gets to ride around and around in a hot air balloon. And some businesses have to accept the niche they’re working in and roll with the punches.
However, that doesn’t mean you simply stop. Businesses are like sharks – if they stop moving, they’re deader than the dodo.
Make small expansions to your services, court customers with great offers and push yourself into profits with every trick in the book. Your business will thrive – even if it’s only courting its niche.