6 questions to ask yourself about expanding your small business

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Should you grow your business? What it will take to get there? Here are some questions to consider to help you decide what comes next.

Growth is a naturally occurring component of life, and the same is true for the life of your small business. As rabbi and psychiatrist Abraham Twerski explains in his viral YouTube video, “The stimulus for the lobster to be able to grow is that it feels uncomfortable.” His words are a reminder that stress doesn’t have to be debilitating — it can be an impetus for positive change, too.

2. What is your motivation to grow? Money is essential, but it shouldn’t be the sole motivation behind growing a small business — the driving force needs to align with a greater purpose. Hugh MacMaster, a mentor at Score who helps companies scale their operations, explains that businesses are born out of the need for a particular product or service. “Somebody has an unmet need and you have the opportunity to fill it,” he says.

5. How profitable is your business? Understanding the numbers behind your business is vital, whether you plan to grow or not. Martinez emphasizes the importance of establishing key performance indicators, or KPIs, so that businesses can measure success and set tangible goals. Similarly, Jarvis warns against gauging success based on gross revenue alone, and recommends paying close attention to margins instead.

 

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