- You took an idea you had for a product line and turned it into a reality.
- You created an online store and invested in marketing efforts to spread the word about your brand.
As a result of your hard work, sales have been increasing, you’ve gained a solid loyal customer base, and things are on the incline. With all the success you’ve had so far, you’re wondering if it’s time to kick things up a notch.
Deciding to expand your online shop isn’t something to be done in haste. Jumping the gun too fast could result in all of your hard work going down the drain. It is best to look at these key indicators telling you that you’re ready to take things to the next level.
1. Your Stock Tends to Run Out Quickly
Many people start off producing, packaging, and shipping their products from their homes. In the beginning, this may work out just fine for you.
However, if you’ve suddenly started to notice that you have more demand for your products than supply, it may be time to vamp things up. While selling out is a good thing, not having enough inventory on hand could cause you to lose out on essential business and revenue.
To grow your online shop, you may need to consider outsourcing your production to Mexican factories or local manufacturers to get more inventory to meet the growing demands.
2. You’re Working Yourself to the Bone
Meeting the constant demands of your customers is hard work. When you launched your online shop, chances are you probably handled everything on your own to reduce overhead costs.
However, if the demands are so high that there aren’t enough hours in the day to get everything done on your own, this is a telltale sign that you should grow your business.
Trying to do it all by yourself is not only physically taxing, but it can quickly lead to poor performance and slowed productivity which could result in a decline in sales or dissatisfied customers.
At this point, it’s time for you to consider hiring a team to carry out various tasks to save you time. A solid team on your side also improves productivity and the quality of the services you provide to your customers.
3. Your Customers Are Asking for New Products/Services
When you first started your online shop, you probably started out with one or two products to see how well they would do. As your brand and products have grown in popularity, however, your customers have started inquiring about new products and/or services.
Ignoring those requests could cause them to go to a competitor who offers the products and services. So, it would be best to consider expanding your business to offer new items to meet the desires of your target audience.
4. You Have the Money to Expand
Expanding your online shop isn’t cheap. From purchasing more space and finding a manufacturer to hiring new employees and introducing new products and services, it can add up quickly. If you don’t have the cash on hand to cover the cost of these things, you’ll end up going deep into debt or even bankrupting yourself.
So, before you decide to take the leap, check your books to see if you have the capital necessary to expand. If after paying your salary and expenses you have a surplus of cash and you’ve been setting aside a considerable amount then you could have the money you need to expand.
You had a brilliant idea for a product that you were able to turn into a full-blown business. Now that things are going well, it’s only natural to consider expanding to increase revenue and generate more success.