Preparing for the Expansion phase
Welcome to the next episode in our series of Eddie Senatore Talking Business, based on our monthly two-page newsletter. In this fourth installment, we look at how a business passes through the growth phase, and moves successfully to expansion.
At this phase, you have to do more holistic management of the business. You’ll be stepping back a bit from the day-to-day while your team completes business tasks, so you can guide the company at this critical stage. Smart planning and good organizational processes are the keys to success here..
After expansion, you’ll be wrapping things up in the final phase, namely, maturity.
The three major issues facing a business in the Expansion phase
- Let’s say your house-building company has gotten great word-of-mouth from happy clients. Your new prospects have opened up more sales avenues for your business, such as building commercial units as well as residential homes. These new product lines may lead you to expand geographically.Make sure your team is ready to step outside the city limits and deal with customers further away from home.
- Management will be your predominant focus at this phase. Not only do you need to keep your customers happy, you need to keep your staff’s morale up as you expand into new areas and product lines.As well, you need to keep an eye on cost control and your supply of inputs as you scale. To ensure that you stay on top of this, harness your information management system and chart out what is happening in your business regularly.With your business growing so much, external factors affecting the marketplace will become more relevant to you. Keep on top of industry news, so you can anticipate issues like skill shortages in the area you’re working in.
- Finally, you need to stay on top of your time management: Now that you’re expanding so quickly, you may find yourself feeling pulled in multiple directions. If you don’t plan out your expansion in advance, you will have more of a pull on your time. Get a good structure in place with the right professionals so you can spend the time you need managing the business as a whole, and not worrying about the day-to-day as much.
Expanding into maturity
Getting through expansion will be highly rewarding. It leads into maturity, where the business has finally “made it”, with a great structure in place and the stability to weather whatever the future holds.
Now that you’ve expanded the company, join us on our last episode, where talk about the final phase, maturity.
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