When you first established your business, your applications for finance were probably accompanied by a thorough business plan. But regardless of whether you required financing to expand your business, go back to the drawing board and have a plan in place before you make any big decisions about your office space, hiring, or working capital requirements. If expansion involves operating in a new or additional location, do your market research. If you need to expand your workforce, assess the role and salary expectations thoroughly.
Consider economies of scale. Can your resources now be purchased in bigger bulk at a discount? Can your products be sold with a higher profit margin? When expanding your business, you may need more money at the outset, but in the long term your costs should reduce in relation to the products or services you are able to sell.
About the Author: A construction management expert with experience spanning 30 years, Ernest Grotsky has been responsible for project management, strategic planning, and human resource management at numerous high profile American construction companies.