In our last post, we discussed the necessary Facts to Know About Expanding Your Business. While the tax and foreign qualification implications are critical, there are other practical factors to consider. In addition to Orlando Commercial Insurance, deliberate these aspects before choosing to expand your company.
What Type of Expansion is Right for Me? Depending on your industry, research what type of expansion will work best for your business. Bear in mind the time, money and desire to achieve success it will take in order to successfully expand. Evaluate what resources you have and consult with local businesses to determine the trends. Further, take a look at the expansion plans of competitors in your industry and determine where they succeeded and failed.
Will I Benefit from Expansion? While there is ample risk associated with business expansion, weigh the potential benefits, as well. Is expanding cost effective? Will it promote a larger customer base? Are you prepared and capable of managing the added stress.
Can I Afford to Expand? Obtaining a business loan might require collateral on your home, which can be risky. In the event your venture is not successful, your business and home could become property of the bank. If you are considering purchasing a competitor’s business, weigh the financing options and how they might affect your financial situation.
Getting Started? The first step is to create a plan on how you plan to execute your expansion plan. Entrepreneur states that if it is only for internal growth, put together a plan for how you will allocate resources and what you will do to improve your current business. If acquiring a new business, screen the business and consult with business brokers who can assist in negotiations and closing deals.
At Newman Crane, we specialize in customizing business insurance solutions to protect your hard earned investments. Whether you’re looking to add a location or acquire an existing business, we have comprehensive coverage to protect your operations. For more information, contact us today at (407) 859-3691.