What Happens When Your Enterprise Expands

In the beginning, it was just you, and your dream. But now after all your hard work, your enterprise is blooming into a viable business. Well, first of all, congratulations as many people never make it here. Secondly, to help you better manage these transitions, check out the guide to what happens when your enterprise expands, below. 

You’ll need (more) employees 

You may be used to working as a one-person show, but as you expand this becomes less and less likely. Indeed, as the needs of your business get larger, you will need to employ more people to ensure they get met. 

However, you must recruit new employees carefully, so you can be sure that they fit their role and your enterprise’s values. This is because it can be very hard to remove a disruptive or unproductive employee so it’s well worth going through the proper processes before you employ them. 

Move to bigger premises 

Entrepreneurs are used to getting things done, whether they have a fancy office, or if they have to work in their garage, bedroom or even on the dining room table. However, when your business outgrows being solely home-based you’re going to need to move to new premises and deal with all of the hassles and stresses that this entails. 

Yes, that’s right you will need to find a suitable space, make sure it’s connected to utilities, and internet, ensure it meets your budget, and that any of the equipment and stock you have in your home is moved to your new location. The good news is that by working with a professional moving company you can make the last task easier. Indeed, professional movers will deal with all the heavy lifting so you can remain calm and rested enough throughout your move to continue to manage your business.  

Scale up your supply chain 

When your enterprise expands, you will need to make sure that your supply chain expands along with it. Otherwise, you could be left with lots of new orders that you cannot fulfill which will result in disappointed customers and poor reviews. 

To that end, you will need to make sure any suppliers that you are using will be able to accommodate the increase in demand you place on them. Additionally do not forget to negotiate more favorable prices, as you will have greater buying power when purchasing more units. 

Reap bigger profits (as long as you don’t expand too fast) 

The ultimate aim of any enterprise expansion is to become more successful and collect more profit. However, a word to the wise, you must be careful not to expand too quickly, and then end up with a business and an infrastructure that you cannot support. After all, things like new premises, employees, and increased supplies all cost money which will impact your cash flow. With that in mind, be sure to calculate the costs of expansion carefully before you go ahead, as well as compare them to medium and short-term market predictions.