Expanding your home business?

A significant proportion of businesses are based out of the owner’s home and many of the world’s largest enterprises began that way: Apple Computers, Ford Motor Company, Virgin, etc. If you already run a small business from home, at some point you’ll probably want to expand and you need to be prepared for all that entails.

Costs

This is usually the major factor; expanding a home business naturally incurs costs. This could be from the price of an extra desk or additional computer, to physically expanding your home with an extension. Do you have the cash saved, are able to get a business loan or have a potential investor willing to help you out? Write yourself a business plan with a cash flow forecast as banks and investors will insist on seeing one.

Staffing

If you are expanding, it probably means business is good and you have more work coming in. This leads to the need for staff to help you. You need to calculate if an extra salary can be afforded by your business and then investigate the local employment possibilities. Staffing also necessitates taxes, and possibly added insurance. Using an umbrella company such as www.atlantic-umbrella.com is an alternative to purchasing accountancy software to deal with such aspects of business administration; it also frees up some valuable time.

Premises

Expanding your business often calls for expanding your premises. Consider if this is possible in your current property or whether you might need to find something new. Check the local press to see what kind of properties are available in your area, and the costs involved making sure they are not prohibitive. You might also consider sharing premises with others in your situation.

Suppliers

It is always good to build relationships with your suppliers, but if you are expanding, talk to them and see if they can help. They might offer better terms for larger orders and spread the costs while you are in transition. Remember that they want your business as much as you do from your own customers.

Customers

If you already have a steady and loyal customer base, make sure you don’t ignore them as you grow, after all, they have helped you to get where you are now. Keep them informed of your progress. Set up an email newsletter and Facebook page so that customers can see what you are doing in terms of new products, ideas or services.

Marketing

This is a major consideration. Marketing and advertising are costly but necessary in a small business, and you’ll need to write a detailed plan of how you will take this forward. Make use of the free social media tools available and always remember that word-of-mouth is invaluable. If you haven’t already, register a good company name and have a simple but eye-catching logo to use on all paperwork and online. You want people to remember you, and to see what a fantastic business you have developed.

Posted by on Apr 14 2014. Filed under Blog. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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