Expert Answers to Biz Questions
Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.
How to Take Your SME to the Next Level
According to a recent study by the Association of Chartered Certified Accountants, almost a quarter of SMEs (24%) are planning on going global in the coming years. With this in mind, it seems that many small business owners have big ambitions.
If you feel you fit with the stats and want to find out how to grow your business, there’s a lot to consider before you take the leap. To help you make up your mind, here’s a look at the pros and cons of growing your business.
There are plenty of positives when it comes to taking the next step with your business. These include:
Perhaps one of the most apparent advantages of expanding your business is the revenue that it can achieve. Adding to your current offering or broadening your customer base by opening in more locations can result in more sales and therefore more money for the company as a result.
If done successfully, the profits earned can bolster your business and help you to expand in other ways, such as investing in more staff and or premises.
If your business is doing well and you are seeing an increase in sales and profits, your SME will be seen as a financially viable business. Financial institutions, from banks and insurance brokers to investment companies are more likely to back bigger businesses. This is because they know that these larger companies are financially better off.
As you grow, you will find that you are able to enjoy discounts and savings. This is because an increase in production brings down costs for things like marketing because you have a bigger pot of money available. Also, you can get discounts for buying things like stationery wholesale.
Investing in the right equipment can help to save money in the long run, too. Items such as commercial washing machines, like these from JLA, or kitchen essentials can make all the difference if you are growing your hotel business or restaurant chain and need to wash in bulk.
There are some downsides to growing your business, however. Some of these are:
Larger businesses are more complex. One example of this is how much cash you will need to grow your business. You may need to borrow to expand and the initial financial losses can be hard to navigate. You could also lose the high levels of quality as you grow.
A bigger business means more staff to keep happy. You will have to find new ways to manage expectations of your team and accept that there is the likelihood that you will see a high turnover of staff if things don’t go to plan.
In addition, as you will be overseeing a larger company, you will probably have to relinquish a lot of your typical responsibilities, delegating to others along the way. If you feel like you would not like the lack of control, expanding may not be for you.
If you think you are ready to take the next step with your business, it’s worth weighing up the pros and cons before you take the plunge. Whatever industry you work in, you’re sure to find both rewards and challenges as you set out on your new path.
Copyright 1995-2021, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.
DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages. TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business, CyberSchmooz, and BizCafe.