Key takeaways:
- Growing a business is a challenging yet exciting step for most business owners.
- If you don’t take the right steps and use the proper help, your company could falter.
- You should expand if you’re consistently generating profits and your clients keep coming back.
- You should also think about expanding if there’s high demand for your product and you’re running out of space to operate.
- Business Process Outsourcing (BPO) firms offer companies an attractive way to grow without incurring as many risks.
Knowing when to take your company to the next level is a challenge for most business owners. When you decide to grow your business, it can go one of two ways – either the business will flourish and become more successful or it will get overwhelmed and falter.
What separates the latter from the former? It is simple, really, or it should be after you read this article. A well-thought-out decision before scaling up is paramount. If you meticulously assess your business’s strengths, weaknesses, and needs, you will have an idea or two on whether it is in your best interest to expand.
So, what are the indications that your business is ready to grow to the next level? If you are looking for signs that your company should expand, here are five.
1. You constantly generate profits
This is the easiest way to know whether or not you should attempt growth. First, take a look at your company’s net income. This will give you a glimpse of how much money you have left after you pay your bills. If your net profit is constant and there are increments in the registered values, it may be time to grow.
Other than stacking cash at the bank, profits can be put to better use in growing your business. They will generate more profits that way. Don’t only focus on short-term success; you want long-term successes and consistently growing earnings. If your business does have a regular income, investing some of the profits into growth should expand your net income.
2. Your customers keep coming back
If your clientele always comes back to you, then the service you provide or the products you sell are top-notch. This occurrence indicates that you should keep providing the same way, and if you expand, it may mean even more customers. If your current customers are asking about new locations or products, you need to seriously think about expanding.
According to a 2015 report, businesses with no stable customer base are more likely to collapse. Therefore, the opposite is probably true: The regular flow of customers is a green light for you to grow your business.
3. There is a high demand for your service/product
If there is continued demand for your products or services, what you offer is satisfactory. High demand means you have repeat customers which is the best situation for a business looking to grow. Recurring income accumulated from this customer base will help stabilize the company for expansion.
However, it would be best if you did not expand at the exact moment you noticed a surge in your customer base. A sudden rise in customers may be a result of seasonality or fluctuations in the market. Wait it out, observe to see if the increase in demand for your products or service is a temporary situation or not. If it is the former, go, go, go.
4. You are running out of space to operate
When you notice that you are running out of room to carry out your work efficiently, it is a sign that you should expand. Your space may be too small or you may need more staff to keep up with demand. Building a second location in this case may be a very good idea.
For some companies, this may mean offshoring some business processes to other parts of the world. Offshoring may be one of the best decisions you make. It offers many benefits to small and mid-size companies such as proprietary talent matching, reduced overhead costs, and process optimization.
5. Customers are encouraging you to grow
As the saying goes, the customer is always right! If your clientele often asks you to grow and usher in more products or services, then it might be the time for you to do just that! Meeting customer demands is essential for any business and if you satisfy these needs, your company should register an increase in sales.
This may translate to increased working hours. For businesses spanning more than one location, additional stores or business rooms may be in order. This is another situation where BPO comes in handy.
How do BPO firms help you grow your business?
Initially, BPO was mainly known to remedy financial constraints, but its uses have evolved to offer a wide range of benefits. An excellent example of BPO is when a manufacturing company hires workers to handle its supply chains overseas. The BPO firm can handle talent matching so that the right workers are hired to complete tasks.
BPO is vital for handling front-end and back-end office functions, depending on the requirements of a given organization. Commonly outsourced functional areas include Administration, Accounting, HR, Marketing, Customer Service, and call centers. Here are some reasons why BPO is great for your business when it’s trying to grow:
Focus on your core tasks
When a company offshores tasks to an external vendor, it can focus on the main functions and processes of the enterprise. This will provide room for it to grow both financially and physically as you are not continually running internal repetitive tasks.
Reduce costs
This is still the main reason for using BPO. Running a business is no easy task, and the option to subcontract has become more reliable and viable for most companies. A good BPO firm will provide services at affordable costs while maintaining quality and integrity.
Increase productivity levels
As a business continues to grow, so do its responsibilities and number of tasks. Many owners take it upon themselves and their staff to keep up with new amounts of work and productivity levels are reduced from burnout. If a business has to work beyond its specialty, the workforce will be stretched. In such scenarios, BPO is very important.
Doxa7 can take your business to the next level
Exciting as it might sound, growing your business requires the utmost care and planning. Consider the points highlighted in this article, such as if you have a growing customer base and net income, and let them be a guide for developing your company further.
Getting help from BPO professionals when trying to grow your business takes a huge burden off your shoulders. Doxa7 has ample experience helping small to medium businesses build high-performing, scalable, global teams and we can help you too. Contact us for a free consultation today.
