When Is The Right Time To Expand
So you are considering expanding your business, adding a technician or customer service rep or even expanding into a new area of service! But is the time right, How do i make that decision?
As entrepreneurs and business owners we keep looking for the next opportunity to grow or try something new. After all, isn’t that the reason we went into business. We felt like there were opportunities for us out there in the business world. There always seems to be a new road or a new trail to go down. A new shiny penny for us to pick up and explore. But is it a distraction or any opportunity? The real question is, Is it the right time? How do you know if you’re ready to take the plunge?
There are a lot of variables in this question so let’s take a look at some the questions we need to be asking ourselves.
- Am I currently so overbooked with calls so I am consistently working myself or my employee’s with overtime
- How much additional expense (overhead) will you be taking on to make this move
- How much additional work will it take to absorb that overhead and do you have enough work currently to do that or will you have to acquire that additional work
- If you do not have enough work, how long will it take you to acquire it
- How will this move affect your “Cost Of Doing Business”
- Will I have to adjust my rates to keep my margins where they are or can I afford to let the margins slip a little until the workload adjusts to normal levels
- How will I manage the additional employees that this move will require
- Is this growth going to require a facility upgrade or move and how will this affect the bottom line
- Will I need to add additional employees and what will that cost be
- Will I need to add new equipment such as vehicles and what will that cost be and how will I pay for it
These are just a few of the questions you need to answer before you bite the bullet.
If you can’t get positive answers to most of these questions, you may be biting off more than you can chew.
My suggestion would be to do a business plan/evaluation first. If you’ve never done one, you can buy some software for probably around $100 that will walk you through it. It may take you a little time to fill in the software questions but believe me, it will be well worth your time. It will bring up some questions that you would probably never think of on your own.
As an entrepreneur, keep looking for opportunities that will keep you growing but just make sure the opportunities you seize are the right ones. Continue to ask the right questions and don’t be spending all your time chasing shiny pennies! Polish the ones you currently have in your control!
Founder: Appliance Service Secrets
Don Harris owned and operated his own appliance services business in Atlanta, Ga for over 45 years. In 2014 he sold his business, Dependable Services, to his son Brannon. Dependable Services currently operates 18 service vehicles and has 38 employees, providing services for heating and air conditioning, residential appliances, restaurant equipment, commercial refrigeration and water heaters to the metro Atlanta area. Don acquired the nickname “DependableDon” because of his reputation of being there when he said he would be there and doing what he said he would do. Don now spends his time coaching and consulting other businesses in the Appliance and HVAC industry.