Wednesday, January 8, 2014

Should I Expand My Business or Keep it Small?

When you first become an entrepreneur, things seem pretty simple. If everything starts to go well, you will ultimately be faced with a decision. That decision is whether or not you should expand your business or keep things the way they are. If you decide to expand your business, you can hire staff members to help meet the needs of your customers, raise capital and even invest in equipment. First you should dig deep and try and reflect. Take a closer look at yourself and determine what motivated you to become an entrepreneur in the first place. Perhaps you became an entrepreneur so you could travel or even spend more time with your friends. If this sounds like you, you might want to consider scaling back and not hiring a full staff in-order to keep things rather flexible. If you hire a staff will only increase the responsibilities you must fulfill. Try to remember that if you're trying to expand your business but you are still enjoying your freedom, you can put your expansion on hold. Another strategy you can use is consider your business model.  For example, if your business involves producing electronic devices you might want to expand your business rather quickly in-order to pay for manufacturing costs and eventually improve your profit margins. Perhaps your business produces an one of a kind product, expanding your business might cause your product to lose that "special touch" your current hand made product has. To continue reading about whether or not you should expand your business, click here.