The need to expand your business is a positive sign as it is an indication you have outgrown the start-up stage and are building your client base. However as with any change it needs careful consideration to ensure you make the best decisions as you move forward.

Financial Information

Before you instigate any period of expansion make sure all your accounts and financial records are up to date and that you are fulfilling your obligations where tax is concerned. This is also a good time to ascertain whether the business structure you chose at the beginning is still right for you. For example, would it be more advantageous to move from being a sole trader to a limited company in terms of tax implications and to you give you some enhanced personal protection against financial risk.

Premises

Until this point you may have been working from home and you may feel that with expansion the time is now right to either move into a serviced space or to rent a business premises. If you need general office space then research price per square foot in your local area and don’t be afraid to negotiate with landlords. Often, if competition for property isn’t high in your area, landlords can be keen to sweeten the deal and will either offer you a lower price or other incentives such as an earlier break clause.

However, if you need specialist premises and equipment it is better to look first to websites and magazines dedicated to your profession. One example of this would be dental practices as you will save substantially by not needing to purchase new equipment if you can move into an already resourced location. There will be publications, both online and offline, for many different professions so make sure you see what is available.

Staffing

As your business grows you may find it is no longer possible to wear all the different hats within your organisation and so you decide to take on other members of staff. Naturally this will bring with it responsibility for payroll and for understanding issues relating to contracts and employment legislation. If this is an area new to you it is best to seek expert advice. Even if you don’t take on in-house HR staff, you can at least outsource the legal issues to specialists. Rather this expense than ending up in an employment tribunal.

You also need to be careful not to grow too quickly in terms of staffing, as aside from the payroll and benefits cost, you also need to train new staff members thoroughly, carry out appraisals and monitor whether they are a good fit for your business. This can be time-consuming when you are also trying to undertake the core functions of your business. A compromise can be to take on some in-house employees but to supplement other roles by using freelance staff. That way you have no long term commitment and won’t over extend yourself in terms of payroll expenditure.

Strategic Planning

Now that your business is growing it is also time to consider your long term strategy. Is your intention to consolidate after this expansion or are you looking to grow rapidly to other offices or locations? You should also look at what you offer in terms of products and services and decide whether you want to increase your range or focus instead on sales of existing offerings. Knowing where you are heading can help you steer a steady course for your business, rather than being purely reactive and only acting on issues as they arise.

If you have been working from your start-up business plan up until this point, now might be an opportune time to craft a five year strategic plan to take you forward. This will provide a strong framework as your business and your team expands and as your profits continue to rise.