As a veteran owned business, you deserve to be very proud of your accomplishment and success. Certainly, Veteran Owned Business Roundtable (VOBRT) considers the improvement you have made by taking full advantage of the strategic webinars, online meetings, one-on-one and regulatory processes sessions contributed to your winning formula. Now you are considering expansion. Here are some very valuable tips to consider as you begin your evaluation process to expand.
Length of business profitability
Even though your business has been profitable for the last year a surge in profits does not justify business expansion. Expansion should not be based upon profits that are seasonal. Three years of steady profitability is more realistic. Therefore make certain that your business model projects a steady profitability pattern that is sustainable.
Business cash flow
As a veteran owned business one of the key measurements certainty of cash flow. This is essential to your business stability. A successful business foundation demands that getting paid on time for services or products provided is crucial. If this is not the case then your veteran owned business will not have the finances to fund business expansion.
Strong employee team
If you do not have a strong management team that is firmly committed to make decisions during the expansion process, this should raise a red flag. Consider testing your management team with more responsibility and evaluate their responsiveness to your increased decision-making orders. Expansion with a strong management team insures a smoother expansion.
Efficient business systems
As an owner of a veteran owned business that is bursting at the seams and seeing more and more contracts and demands for your services make certain your business operation is rock solid. Consider these factors
- Will your new additional employees have a training operational manual ready to guide them?
- Have you developed an employee service or manufacturing team time allocation plan?
- Will you have sufficient cash flow to meet the increased service or product delivery demands?
- Have you researched relocation option expenses and considered service or product development space?
Now that you have examined the checklist and you feel confident that your expansion plan is viable and your cash flow projections and management team and business model and operational systems can meet growth goals, plan a workable expansion timetable. For more information on veteran owned business expansion and how to prepare for the next steps toward success, call 586-722-1557 or contact VOBRT today.