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Factors to consider while expanding your business

Jul 12, 2021 | Business Formation

You’ve worked hard to build up your business from the ground up. Now all of your sacrifice is finally paying off, and you’re ready to expand your company by providing new products or services, targeting new customer bases and hiring new employees. These moves can be very profitable if done right, but can ruin your business if done wrong. Here are a few factors to consider before you begin expanding your operation.

Perform updated market research

You probably conducted your fair share of market research when you were in the process of opening your business. Now that you’re ready to expand, it can be detrimental to continue to rely on old research – especially if you intend to break into a new business area as part of your expansion.

As any business owner knows, different demographics have different spending habits, and are attracted by different types of marketing techniques. Before you invest in an expansion, make sure that your plans will be profitable in the long-term. Study the competition carefully to make sure that you stand a reasonable chance of being able to take and hold your share of the market.

Update your legal toolbox

As a business grows, its legal toolbox must expand with it to meet its ever-changing needs. If you are about to open a new satellite office or hire new employees, it’s a good idea to hire an attorney to perform a review of your company’s practices.

For example, an attorney can go over your employment contracts to make sure that they are still favorable to your company and are thorough enough. They can also review your human resources policies to ensure that you will be able to protect your company by minimizing the likelihood of potential discrimination or wrongful termination suits.

There are some state and federal laws and regulations that kick in once a business reaches a certain size or employs a certain number of people. An attorney will be able to evaluate your company’s projected growth and advise you on the steps you’ll need to take to remain compliant with the law as you expand.

Expanding a business comes with all sorts of challenges and exciting opportunities. By taking the right steps, you can help to ensure that it will be a success – and you can avoid common pitfalls in the expansion process.