3 Essentials for Successful Company Growth

New business owners often find the prospect of growth intimidating; however, the drive to open new units is a critical factor for success.  More units mean that you can employ economies of scale in areas such as marketing and purchasing.  There are several factors necessary if you wish to grow your business successfully in an increasingly competitive environment.

 

Begin with Your Existing Operations

 

Start by ensuring that your existing operations are profitable and stable.  They should consistently meet or exceed operating standards.  An accurate understanding of your finances, both the operational systems and profitability of each location, must be clear.   This goes beyond having cash in the bank; although that is important as well.

 

Hire New Employees Instead of Stretching the Demands of Current Ones

 

Next, take the time to invest in the human resources needed to support your anticipated growth.  New units require both time and physical resources to sustain operations.  You can’t expect to draw either from current restaurants without creating voids.  Have a team of individuals on hand specifically for use only in the new location.

 

Money Up-Front

 

Finally, obtain the capital you need to fund growth.  Don’t wait until a leasing or purchasing agreement has been reached.  Have the money on hand in advance.  If you have to draw money from other units to support the growth of the new unit, all of the locations could be endangered.  Lack of financial means will also take away from your focus on establishing the core business operations.

 

Wax on, Wax Off – The Importance of Focus and Discipline

 

Focus and discipline are necessary for any expansion you plan.  Management needs to be able to focus on both maintaining current operations while growing new human capital and locations.  Discipline will keep you moving along the growth strategy you determine necessary.

 

The urge to grow is strong when business is good, but without the proper resources, success is unlikely.  By taking the time to set your foundation, you improve your chances of a positive outcome.

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