The main requirement for the expansion of your business is that there is an unsatisfied or potential demand for products you are able to produce. If the demand is for the product you are already supplying, then that is usually the simplest type of growth to handle. If you are going to diversity into another product, you need to consider all the research and the USP as if you were starting a new business. You will also need to prepare a revised Business Plan.

The Money

When you have revised your Business Plan, you will probably have found that you need more support the growth plan. Fast expansion is a common cause of insolvency. If you take on more business than your capital can support, this can lead to overtrading and subsequent. You may need to increase your stock and take on more customers. Expansion is not always easy to handle. The usual reason for increasing sales is to increase the gross profit. Do not neglect to find other ways of increasing the gross profit. Make sure your cash flow forecast is accurate and be prepared to refuse some sales if you cannot yet afford to finance them.

The People

Treat your staff well and considerately, expect hard work when necessary, but do not expect miracles. Consider carefully whether you need more or better skills. Consider also the capacity of people who are not as highly motivated as you are. If training is required, plan it well in advance. Your people should be ready to do the job, and not away on a course, when the crunch comes.

Management

The management you are concerned with is the professional organisation of resources to motivate people to work together towards a common objective. It is concerned with the outcome of the adverse conditions so that your plan will work. To expand, you must change conditions and objectives. You must realise you are managing in a moving situation.

You must learn to delegate. As the business grows, you cannot make all the decisions. Everyone you employ has a brain; and there will be areas of the business where members of your staff will know more than you do. It is in your interests to employ as many people of this calibre as possible. Delegation is using their skills to get the result you want. You create the conditions in which they can work happily and give them the tools.

Computers

You need to get your administration as efficient as you can. However a computer will not improve your system by itself. You must have worked out a good clear system for the computer to handle. Only then will it process your information with maximum efficiency. Plan a system to process the information you have available to give you the results you require; then find some computer software that will cope. At this stage you may decide a manual system is better or that there is a ready-made package program closes enough to what you want. Only then should you look for the computer hardware to run the software.