Taking a business to the next level isn’t as easy as it seems, and for most business owners growth and a better bottom line are one of the key objectives in their business plans. While looking for growth, several important factors need to be taken into consideration. They mainly involve the operational, financial, and marketing aspects of the business. These are discussed in this article, and with it how self storage can help with business expansion.
As storage is an integral facet in keeping the inventory secure, the role played by outside storage providers is key when wanting to expand and create new sales channels. How it is integrated into business development is both a financial and operational decision. The rental of a self storage unit has proven to many growing businesses to be a boon as they cater to both of these needs.
At Stop & Store Penrith, the affordability of a rental unit is assured along with the convenience factor of having an independent place of storage. Being nearby it achieves the operational objectives of any business looking for Cumbria storage.
Gearing for Business Growth
Business growth is normally accompanied by favourable economic and market conditions. These help a business along the way and are the first factors to consider when gearing up for growth. It doesn’t make sense to commit to expansion when it isn’t the right time to do so.
Look out for these signs and analyze the market that the business is in to assess where the market opportunities lie.
Financial Sustainability
Gearing up for growth and achieving the targets that the business is aiming for requires a financially stable situation that can invest in the creation of new customers, better distribution, and more inventory. A sign should be that the business has been showing a positive cash flow for a considerable period, and it is capable of financing the intended growth.
Keeping the business in the black is very important, and should a loan be needed to finance growth, then the payback period and terms should be clear and achievable. In the case of getting a firm contract with known terms and conditions, signing up for a loan is a safer option than just hoping for the best from future sales. Debt isn’t a bad thing, and it is an accepted way of financing growth, but it must be properly managed.
Marketing and Communication
Getting new customers, building the loyalty of existing ones, and improving the image of the business are all functions of the marketing department. Starting with a good website, and following up with an active social media campaign will be one of the first things to be put in place.
By ensuring that regular posting takes place on social media accounts, the brands and the business will be brought to the minds of the clients and prospective clients of the business. Innovate with creative marketing campaigns, run specials, and promotional periods and market them through these channels, always having something to offer existing and new clients. Become a leader in your business category by knowing what the opposition is doing and doing it better yourself.
Operations
As the campaigns start to bear fruit the growth phase will be needing operational support. This means gearing up on space, staff, and stock. It’s no use having the sales but running out of stock. That would mean death to the idea of growth.
Space is one of the most important factors, and with more staff, more space will be needed. This may mean getting more expensive office space. Consider freeing up warehouse space and doing small alterations to create extra office facilities. This is the cheapest way to make space available, while at the same time using outside storage for the stock.
Top of the list for storage space is self storage: it is almost always ready at short notice, doesn’t require an inhibiting contract, and comes in garage-sized units which can be multiplied if needed.
The Expansion Phase in Business
A business morphs as it grows. When it first starts, budgets are tight, the owners are not sure if it is going to exist beyond the first year, and at times it goes through periods of pure survival. This could be seasonal, but planning for it makes a lot of sense, as when it goes badly, a tough decision has to be made.
Of course, when the business becomes a success, the spirits are uplifted and there is money to spend. As it takes off there is a cash flow implication, and this must be managed carefully. This normally is a result of the business expansion we are talking about. Going gung-ho isn’t an option, as more resources will be required to take the business to the next level.
This is called resource maturity, where the systems, the routines, and the security factors are all in place, making the business become very stable in the way it operates.
Looking for Space
Even with prospects looking promising, there is a risk factor to expansion. The risks of financing too many cars, taking on too many people, and signing up for new fancy premises are just three risks. These typically happen when business expansion is on the horizon.
Until the business enters the maturity phase it may still be unwise to risk too much of an increase in infrastructure. It simply means that it’s still time to be careful.
One of the safe steps in being careful is a self storage rental for business needs. The risk is very small, and commitment is only for a month at a time. Besides being cheap, self storage doesn’t have the long-term tie-down factor and if things don’t work out, can simply be retracted.
Stop & Store Penrith offers three-unit size options which means that there is sure to be a suitable one for your business expansion needs. Located just off the A66 near Penrith, the storage facility is very accessible and can be used as and when needed.
This modern storage facility is well-secured with the latest technology and security monitoring. If you would like to rent a self storage unit, book online using the link below or call us and we will be very happy to hear from you.
Find us on https://www.stopandstore.co.uk/penrith-storage/
Or call us on 01768 800291.