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Starting and running a business is not only exciting but also challenging at the same time. For the business to survive and to reach the level of success you aim for, strategic decisions need to be made correctly and at the right time.

One of the hardest decisions to make is expanding your business. Whether you want to explore new markets, bump your production capacity up a notch, or develop new products that the customers will love, there are three things to consider first.

Sustainability

The market is growing at a relatively sustainable pace, but that doesn’t mean you will not experience sudden spikes in demand. These sudden spikes can be tricky to handle. On one hand, you have the increase in demand to deal with. On the other, there is the fact that the demand might drop after the spike is over.

This type of situation is part of the reason why sustainability is one of the most important aspects to consider when deciding to expand your business. Is there a sustainable growth in demand that the business can meet in the future? Will the expansion be worth doing based on that level of growth?

When there isn’t a sustainable demand to rely on, it is often best to seek temporary solutions for handling sales spikes. You can rely on outsourcing companies or take other temporary measures to fulfill the customers’ purchases, all without adding unnecessary long-term overhead costs.

Human Resources

Growing a business also means expanding the team supporting it. You can’t continue to rely on an excessively small team when there are more tasks – and challenges – to handle. For many business owners, finding the right people to fill key positions is a challenge on its own.

Finding talent should be your primary focus during the expansion process. Larger companies usually rely on third-party service providers and staffing agents to find qualified team members. A US company expanding to the UAE, for instance, can simply partner with the best staffing Dubai agency to find fresh talent quickly.

You can actually borrow the same strategy to fulfill your business’s HR needs. Many hiring companies and staffing agencies will work with your small business and assist you in finding great talent for important positions. Alternatively, you can use conventional methods to recruit talent.

Costs

The last aspect to look into is cost. There are a lot of costs associated with expanding a business operation. You may have to invest in a larger office and absorb higher overhead costs; the extra team members will increase your overhead by a substantial margin.

Make sure your business has what it takes to deal with these costs without jeopardizing its future. Sure, business growth is all about taking risks, but it is your duty as a business owner to understand and mitigate those risks in order to secure a better future for the business.

Take these three aspects into consideration and you should be able to make the right decision regarding expanding the business. The market is at its most attractive right now; making that decision to expand and grow further is your first step towards capitalizing on a growing market.

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