Company expansions are often ambitious plans entrepreneurs have in mind from the very first day they start the venture. While plans for expansions may look great on paper, when should a start-up really go for it? Could your company be expandable without you even knowing? Read ahead to find out:

The Demand is Exceeding the Supply

The classic tell-tale sign that indicates a company needs an expansion is the rising demand. If new customers are steadily flowing into your venture, then it’s time to expand operations to accommodate the rise in demand. Note that the keyword here is “steadily.”

Your company may seek spikes in demand during brief windows. For example, it’s perfectly normal to receive new orders during the holiday season. These temporary increases don’t necessarily indicate that your company is ready for an expansion.

However, if customer demand, over the course of several months, or better yet years, has been on the rise, then that is a major sign that you can safely increase supply. It’s important to carefully tread the scaling game here.

The Company is Financially Secure

Company expansions usually boil down to one thing: the cash. If your venture already has the money, then expanding might be the next best way to invest it. A positive cash flow is a major asset to an expansion.

Keep in mind, though, that your start-up must be very financially comfortable to “have the cash” to expand. That means the venture may need to rely entirely on loans, or will be able to pay off loans without going into serious debt.

The Company has Reached All Its Growth Goals

Is your company reaching all its financial goals for the year? Are the sales through the roof as expected? Has the company grown big enough to fill up space, and maybe even need more space? These are signs that your venture has reached its peak as a start-up or a small venture. Now might be the time to grow even bigger and set bolder goals.

Small start-up owners may naturally have concerns about setting, reaching, and thinking beyond achieved gaols, according to a globally recognised business coach.  You can seek expert help from consultants to expand beyond the company’s current capacity and gain the confidence to set lofty ambitions.

You Spot a Massive Growth Opportunity

Back in the day, when Facebook bought Instagram for a record one billion USD, a few people saw good business sense in the transaction. Not too long after, Instagram is as big as Facebook, and one company owns the world’s top two social media sites.

In the early days, Instagram was offering a service that could directly compete with Facebook. Facebook, too, was capitalising on photo sharing. But Facebook bought Instagram before it could become a hit, and benefited enormously from the acquisition.

If you see a similar opportunity to really hit it big with a subsidiary, go for it. Invest in new ventures that could complement your existing product. At least, it would take a potential competitor out of the market.

Company expansions are like starting a new business. They sometimes work out, and sometimes don’t. but you can increase the certainly of the success of an expansion if any of the above signs are present.