Published on April 22nd, 2014 | by Jose Vasquez0
When to Start Expanding Your Business in Startup Tech Companies
Understanding when to start expanding your startup tech company is a key to achieving a successful growth rate.
There are many opinions on the best possible time to start expanding your core business, and unfortunately there is no one “right” or “wrong” time. However, there are a handful of factors you’ll need to consider to determine whether it’s finally time to start expanding your reach.
Most entrepreneurs get caught up in big thinking. Big thinking is great, and necessary if you want to eventually become a force to be reckoned with in the tech industry, but you can’t let your grandiose visions get in the way of practical business planning. It’s awesome to think about growing bigger, faster, but it’s more reasonable to think about growing bigger, more appropriately.
Expanding too early can put too much of a strain on your current resources, and take your business to an operational level that it is not familiar with and is not fully prepared to handle. On the other hand, expanding too late can be difficult if you settle too deeply into your niche.
If you’re looking for the golden timeframe to expand your business, look for the following qualities in your business:
- (Near) Profitability. You want to be making money, or at least be close to making money. If your current model is hemorrhaging money, there’s no reason to think expanding will suddenly turn things around.
- Passionate Users. Even if your following is relatively small, as long as you have a handful of truly passionate, dedicated users, your app will have the potential to expand to new demographics or to a wider audience through social spreading and new user adoption.
- A Flexible Team. Is your core team able to handle new responsibilities, at least temporarily? It’s wise to hold off any major new hires until you’re a little more settled into your new model in case things don’t pan out as you anticipated.
If you’re currently thinking about expanding your business in terms of products and services or in terms of your overall reach and you need help fine tuning the details, reach out! I’m here to help entrepreneurs like you chart a perfect curve of revenue growth.
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