Aug 5, 2017
New projects in the form of new services and products is a good way for businesses to reach untapped markets and increase revenue. However, it is important that a new business project is sound and well thought of for it to make money. Here are some questions that you should ask before starting a new business expansion project.
What am I going to achieve by expanding? – Consider what you will need to expand your current operation. For example, will you need more equipment, extra room and how much will these changes
Do I have enough financing to expand my business? – Your plans will require funding, therefore look at how you intend to finance your operation. Start off by accounting for all the costs that you know off and look at how much money you currently have for your new project.
Will I be able to afford to hire new staff members? – Expanding operations means that you will need extra employees to manage your new project. Finding the right staff a time-consuming task but one that should be done correctly.
How will costs increase permanently? – Additional equipment, space, and staff will mean that your costs will increase. Remember that most of these costs will be consistent costs until you make a profit from the project.
Do I need additional financing? – Look at how much funding you will need and how best you can access it. Researching different methods of getting a business loan is a good way to get a loan with the lowest interest.