Don't Get Too Excited!

Once your business starts getting more and more customers it’s so easy to get excited and to get carried away. Many businessmen would jump into branching out and expanding their businesses right away.

Expansion is a good way to go. However, one must not go this path without careful study. Again you have to examine where you are financially and where you are with your other resources. Even if you have sufficient capital for the expansion expenses, would you be able to give your whole business enough attention to make it run as smoothly the way you are doing it today?

There are also other considerations like do you have enough demand for your product to get the sales with the same or even higher rate of income you are getting today? If you are getting financing, how much risk are you willing to take in order to pursue your expansion? You have to remember that a loan would mean collateral. And if you are not able to pay your amortization, you could lose not only your business but also your property which was held as collateral.

There have been businesses which folded up because of too much and too fast expansion. The list of questions to consider before expanding mentioned here are not comprehensive. Nevertheless, it is important to stress again the importance of careful study and serious thinking before expanding your business. Do not just jump into something without knowing what it is you’re going to land on.