Entrepreneurs are decision-makers. They take decisions on the path or direction to drive their business. One of such decisions they have to take is when to expand their enterprise. Whether you get it right or wrong, your conclusions will have a groundbreaking impact on your business. Obviously, you do not want to get such a key decision wrong and join the approximately 70% to 80% of startups that fail within 5 years in Africa. As such, Jumia Travel, the leading online travel agency, shares the things you have to consider before expanding your business.
1. A clear strategy
The strategy is laying a clear roadmap ahead for the company to achieve its vision and mission. Without this, your expansion may be a totally foolhardy risk.
2. Stability of your financial report
You should look to the data contained in your financial reports to determine the viability of an expansion at the current moment. The reports should show increasing profits, a firm handle on salary payment and good control over purchasing expenses.
3. Relationship with customers
The truth is most companies in their early days do everything to keep their customers happy, and during their expansion phase, they fall apart in terms of customer service. Take this opportunity to build a rapport with your target group to win them over to your side. This is essential if the relationship is strained. If you cannot keep your customers happy, you really have no business expanding because there will be endless complaints which will not only ruin the reputation of your business but can also lead to business failure when you start losing them.
4. Effectiveness of your workforce
A business depends on a well-trained, effective workforce to handle day-to-day activities. If you can rely on your staff to do their work tasks in an efficient manner, no matter what conditions throw at them, you are ready to utilize this essential resource to expand your business.
Funding is perhaps the most important. Without capital, the business expansion will be near impossible. One trending way to get funds is through venture capitalists or serial investors who are willing and ready to invest in viable businesses. Don’t hesitate to take advantage of them by pitching to them. If your pitch is endorsed, they will pump money into your business and you can then expand.