Before you decide to expand you need to examine several aspects of the company, such as skills set, your operations, the financial situation, the rationale for the expansion and the exit. Use this below to prompt your thinking:
1. Skill set
Does your business have the skill set for expansion:
- Do you?
- What is your ability to delegate and empower your managers
- How Good¬†is your management team
- How good is your your staff
- What are the skills gaps and how are these filled (hire or training?)
Can your expansion plans deal with:
- Your capacity to deliver
- Your ability to maintain acceptable service levels
- Your control systems
- Your information systems
How will you finance the expansion?
- Cash flow
- How much do you need?
4. Rationale for expansion
What is the rationale for expansion?
- Competitive analysis
- Costumer analysis
5. What is the end game?
- Trade sale