You have reached an exciting milestone in your business because you’ve invested a lot of time and effort to get here.
However, it is essential to consider several important factors before you finally decide to push through with your expansion.
So, what are the things you should be asking yourself before growing your business?
1. Always check your tax obligations
As a small business owner in Australia, taking the next step would mean hiring several new staff for your business. This is essential because you will delegate some of the everyday tasks to your new team as you increase the volume of your services and products.
However, having new staff members will often mean new tax obligations. Keep in mind that you’ll be paying their salary as well as contributions. Speak with your accountant as you will likely need to register for PAYG withholding and payroll tax.
You need to make sure that you’ve followed all the tax guidelines and also have secure record-keeping practices to keep everything organized and make yourself accountable for all new taxes that you need to take care of now you have staff.
2. You need to effectively manage your team
If you plan on expanding your business, it’s essential to ensure everyone on your team is on the same page. You will depend on them during the whole expansion process.
They will also be sharing your vision for the future, so you need to remind them that their honest feedback and constructive criticism is always welcome in your company.
It’s always better to ask for people’s opinions, rather than just telling them what to do. Make sure everyone has the freedom to show their strengths, so they can bring value to your company and help you when you scale up.
That is why regular communication is paramount to your success. Developing a platform for your team to express their ideas and concerns will be your most asset when scaling up your business.
3. Systemising your business operations for efficiency
If you want to streamline your business operations, then you must systemise all your processes to increase your productivity. This applies to all aspects of your business, including onboarding, HR activities, customer relationships, and financial operations.
Although, streamlining the activities in your business doesn’t only mean purchasing the flashiest software to automate the whole process. It would be best if you also mapped out all the other means to reveal any inefficiencies or gaps in your day to day operation.
For you to effectively systemise your process, you need to create a process map that will help you see all the steps required to reach the outcomes you desire.
4. Know the costs of your expansion and your expected revenue
It’s also important to take note of all your expenses, especially those that you will potentially incur when you scale up your business.
You may want to move into bigger premises or invest in staff development, which might include courses and education certificates. You might also be thinking of getting new equipment for your office like tables, desks, computers or new software to automate your processes.
If these are the things that you want to achieve, then you’ll need to use a sales forecasting tool to aid you in determining your future cash flow as well as knowing your revenue growth, in light of your new expenses and sales history.
During these times, you might want to talk to a financial advisor to help you determine the best funding option for your business. They can also help give you an idea of how much capital you will need to fund this growth, but at the same time – keeping your business operating as usual.
5. Consider your options for funding
If you want to grow your business, you’ll need to consider all the points I have discussed in this review, including the most crucial factor in any expansion – capital! In fact, you won’t be able to scale your business without it.