Small Business Growth: The How’s and the When’s

“Expanding can only be done when a company is ready.” These wise words from Adolf Dassler, Founder of Puma, highlight an important concept for entrepreneurs: growing your business requires foresight and careful calculation. “Now” is not necessarily the best time to expand. In fact, attempting to grow at the wrong time can be incredibly detrimental. The crucial question every entrepreneur must ask themselves is, “How do I know when to push forward and when to wait?” It’s akin to a parent asking, “Is my child ready for this next big step?” As a parent, you understand that sending your child out into the world too soon can have serious consequences. In such moments, it's wise to consider advice from seasoned entrepreneurs who can guide you on how and when to implement your expansion plans.

“Never test the depth of a river with both feet.” – Warren Buffett

Consider this scenario: you are a busy restaurateur running out of space. If your current premises can no longer accommodate your needs, this is a clear sign that you have the potential to grow. If this is a persistent issue rather than a rare occurrence, it may be time to explore how your business can branch out. However, as Warren Buffett advises, approach this strategically. Look into acquiring additional space nearby and spend time negotiating favorable terms with your landlord. If relocation is necessary, have a clear plan to notify existing customers and market to the new neighborhood. Importantly, don’t try to reinvent the wheel—your business has been successful for a reason. Ensure that any expansion maintains your core formula. Remember, customers often vote with their feet; if they’re unhappy, they simply won’t return. So proceed carefully and keep your customers informed throughout the process.

“Expanding capacity requires a willingness to ensure short-term discomfort in the service of long-term reward.” – Jim Loehr and Tony Schwartz, The Power of Full Engagement

A significant difference between experienced entrepreneurs and those in the start-up phase is the ability to let go of ideas that aren't working. The same principle applies to expansion. As a business owner, you need to be ready to pivot when things don’t go as planned. This can be one of the more challenging aspects of growth, but making an informed adjustment early on will yield better long-term results.

“What new technology does is create new opportunities to do a job that customers want done.” – Tim O’Reilly

Sometimes, business growth doesn’t require opening new branches but rather upgrading existing components. In South Africa’s digital economy, technology is an unavoidable factor for small businesses. Are there areas where technology could streamline your operations? A business cannot grow, scale, or compete effectively without leveraging the innovations technology offers. Tech-driven solutions can enhance various aspects of your business, from accounting and customer service to human resources. If you’re not currently utilizing technology, this could be a significant opportunity for expansion without altering your core business model.

“Growth is never by mere chance; it is the result of forces working together.” – James Cash Penney

As a small business owner, you ultimately know what your business needs. Now, you need to find someone who shares your vision and can help finance it. “Approaching the right lender for your business is essential to realizing your growth potential; it’s not advisable to go it alone,” advises Dov Girnun, CEO of Merchant Capital. There’s no need to jeopardize your existing financial health to pursue growth. While business inherently involves risk, ensure that you have the necessary funds to execute your plans before making a leap. Trusted cash advance providers can help you make things happen.

“Just because you’re successful building a small business doesn’t mean you’ll be successful building a big business.” – Robert Kiyosaki

It’s natural for small business owners to feel pressure—both internally and externally—to expand. Most entrepreneurs aspire to grow their enterprises as quickly as possible. While expansion can be beneficial, knowing how and when to do it is crucial for success. Approach your growth strategy with a balance of logic and intuition. And remember William Hague’s wise words: “There is only one growth strategy: working hard.”

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