If you own a business, you’re probably aware that time never stands still. There’s always movement in the market, and you may find that your sales soar and drop. Most people go into business with a view to expanding their initial venture and growing the company, but how do you know when it’s the right time to take that next step? If you’re considering your next move, here are some signs that you may be ready to expand.
You’re turning over a profit
Financing a business is no mean feat. If you’ve got a relatively new company, it can take a long time to cover the costs of getting it off the ground, and you may find that you’re surviving rather than flourishing in the first few years. Although it may be tempting to plow more money into the company, especially if sales are booming, it’s wise to be cautious. Just because you’re bringing money in doesn’t mean that you’ll be in the black and it’s best to wait until you are making a profit to invest more. Keep a close eye on the books and get to a stage where you can afford to finance the next step, or you could put forward a good case to an investor or a bank if you’re thinking of borrowing money.