8 Signs Your Business Is Ready to Expand

November 15, 2019

Did you know there are 2.6 million small businesses in Texas? The U.S. Small Business Administration also notes these businesses employee 4.7 million Texans!

Many businesses in Texas have modest beginnings, but small business growth is not slowing down. While you may have moved from in the red to in the black a while ago or your new business is growing quickly, we support many types of small business as you expand and grow. Here are some tips to help you know when you are ready to expand.

High demand: If you're in a growing field or industry, expansion may be warranted to keep pace with your competitors. If you're paying overtime or had to turn down business, expansion may not only be needed but necessary to sustain your business. 

Cash flow: If you have sustained positive cash flow, this is one of the more obvious signs your business is healthy and ready for expansion.

Unique opportunities: If you have an opportunity that is time-sensitive or seasonal, you may need to expand to seize the day.

Loyal customers: Retaining a customer is easier than recruiting a new one, so be realistic in assessing the loyalty of your customers. Is there anything you can do to make them more loyal?

Strong team: When you expand, you'll need a team to handle all the extra duties. Talk to your team to see if they can handle the changes or make plans to hire more staff.

Space issues: If you're out of space, you may need to expand to continue growing. Space issues are often the result of high demand and loyal customers. 

History: Your sales may be trending upward, and that's a good sign. But make sure you have a positive cash flow and not just an increase in sales. 

Know your limitations: You may see a great opportunity but may not be ready. Be aware of any cycles in your industry to take advantage of the next uptick. Short-term sacrifices may be needed to sustain long-term success.

Review or update your business plan: If you'll need financing to expand, use your business plan as a tool in communicating with your lender. 

Learn about treasury management solutions for businesses of all sizes. 

When you grow, we all win. 

Each business is unique and has unique needs. And, the timing of your financial needs will vary as your business matures. Learn more about our business banking solutions. We want to learn more about your business to help you succeed, and our bankers are experts at finding the best loan for you and your business environment. 

Guaranty Bank & Trust is one of the oldest and most respected banks in Texas, and we are here to serve you with any planning you would like to discuss with us. To learn more, come into a location today, visit us online, or give us a call at (888) 572-9881.

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