Expanding a business is a logical choice if you’re working in an industry where consumer interest is high and you’re keeping pace with your industry’s technology. However, if new technology is slowly making your business obsolete and you aren’t planning to phase out the old to make room for the new, you shouldn’t be thinking about expansion. Neither should you consider expanding while your industry’s experiencing a temporary downturn. Wait for the upswing before moving forward with your expansion plans.

Franchising, licensing and partnerships are other ways of expanding your small business, but be prepared to give up some control over your brand and distribution and to share trade secrets and other institutional knowledge. The terms of these agreements will vary from case to case and you’ll need to understand the deal in front of you and know how to negotiate for what you want.

Signs You’re Ready to Expand Your Business

• You thrived on the adrenaline rush from starting your business.
• You’ve got a strong team of employees whose skills, talents and abilities align with your objectives for expanding the business or know where to find them
• You’re ready to play a more strategic, less hands-on role in your business
• You’ve drafted a business expansion plan that outlines your goals and strategies for managing any growing pains

Small business expansion can require as much time, effort and focused dedication as the start up phase. If you loved the adrenaline rush of starting your business, you’ll probably thrive during its expansion, but be sure you’re up for that challenge again and you’re not just romanticizing those halcyon startup days.

If you’ve got a strong team of employees and you can leverage their skills and abilities to grow your business, you’ll have the resources you need to expand. If you don’t have a strong team in place, you’ll need to recruit them before you expand, unless your business is truly a one-person operation.

As your business expands, you’ll have increased responsibilities that tend more toward the strategic and managerial than tactical. If delegating isn’t your strong suit, expanding your business in ways that require adding layers of staff between you and customers may not be the best way to grow your business. On the other hand, if you’re anxious to relieve yourself of the daily operations that get in the way of developing and implementing new strategies, you’re probably poised to take your business to the next level.

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