• Skip to main content
  • Skip to primary sidebar

NeededInTheHome

Homemade, Home Interiors, Home Life.

  • About
  • Homemade
  • Home Interiors
    • Home Decor
    • Home Repair
    • Home Spaces
      • Backyard
      • Basement
      • Bathroom
      • Bedroom
      • Dining Room
      • Front Exterior
      • Interior
      • Kitchen
      • Laundry Room
      • Living Room
    • Remodeling
  • Home Life
    • Finances
    • Gifts
    • Holidays
    • Home Business
      • Start an Etsy Shop
      • Storage Auction Resale Business
    • Moving
    • Parenting
    • Product Reviews
    • Vacation
  • Homeschool
    • Homeschool Reviews
  • Shop
You are here: Home / Home Business / When Is It a Good Idea to Upgrade Your Home Business to a Small Company?

Home Business

When Is It a Good Idea to Upgrade Your Home Business to a Small Company?

Please Share:
9   

Time to Upgrade Your Home Business? image store front with striped awning neededinthehome

Many people start home businesses without a real plan. They just have a passion to do something or know that they want to eventually grow their company into something bigger. If you try to rush ahead and grow your home business too quickly, then you’ll end up burning yourself out and you could end up with a business model that isn’t sustainable.

This is a contributed post and contains affiliate links. My website is my job, and helps to support our family. If you decide to buy something you see mentioned here, I would be so thankful if you clicked through my links so I can receive a small commission at no cost to you. Thank you! Please read my full disclosure.

[ctt template=”4″ link=”1eq3d” via=”yes” ]How long do you have to wait, and how far do you need to progress in order to upgrade your home business? In this article, we’ll be exploring the possibilities of growing your business and when you should make a move.[/ctt]

In the world of business, slow and steady often wins the race. Getting ahead of yourself has dire consequences and you’re better off taking the slow route. Sadly, taking a slower approach often leads to your business becoming stagnant. Unless you make a move sooner than later, your business will suffer and be plunged into obscurity by more advanced competitors.

So when exactly is it a good time to grow your business? How long do you have to wait, and how far do you need to progress in order to consider growing your company? In this article, we’ll be exploring the possibilities of growing your business and when you should make a move.

When Is It a Good Idea to Upgrade Your Home Business to a Small Company?

Upgrade your home business - image pen signing legal document

Image Credit

 

You’ve made a breakthrough and seen a sudden surge of popularity

 

Businesses need to take advantage of all the opportunities they get. When your product or service sees a sudden surge in popularity, then it’s a good idea to try and capitalize on that temporary boost and ride the wave. You can often do this by reaching out to people on social media, running promotions that draw in more customers, or investing money into more advertising to get your name out there.

 

However, you need to ensure that this sudden boost in popularity isn’t due to a trend. For instance, if your product is trending because an industry figurehead or celebrity mentioned you and your products, then it’s likely a sustainable boost in popularity. On the other hand, if you’re only getting a small boost in popularity because you had a mildly successful promotional campaign, then it might not be the best idea to pour more capital into your growth.

 

The reason is simple; sustainability for a home business comes from word of mouth. The more people talk about you, the more your name will stick around in the industry. Having a small sale or promotional campaign isn’t a sustainable way to grow your exposure if it doesn’t make waves on social media or the news. If your name or product is being discussed, then it’s a good sign. However, if you’re only getting extra sales because your product or service was discounted, then it’s not as sustainable.

 

You have a plan to increase the number of staff working for you

 

Every business needs a plan if they want to grow. You don’t simply just “grow” your company from nothing and you need to have a coherent strategy that everyone on your team is aware of. For instance, what will you do when certain employees are absent?  It’s incredibly important that you plan ahead for continuity should something go wrong. A good example of this in action is when medical practices attempt to grow and increase the number of patients they take. They’ll need a service like www.360HealthCareStaffing.com for more safety in the event that one of their members of staff is off sick or away for their holiday. This is a much better option than hiring an extra employee because it’s cheaper and they’re temporary staff members, not permanent.

 

The same applies to your business. When growing your company, you need to think about how you can plan ahead in advance. Make sure you’re not over-hiring people to help you run your company and always rely on third-party assistance such as outsourcing and freelancers to make running your business smoother. This article from business.financialpost.com will help explain the dangers of over-hiring in greater detail to help you understand it in more detail. In short, be resourceful when it comes to getting work done. A bit of overtime is acceptable and relying on freelancers during your growth spurt is normal, but it’s also important to plan ahead and recruit new employees when necessary.

 

Your business is financially secure with plenty of capital

 

Did you know that very few large companies are actually making a real profit? As shown in this informative post from www.foxbusiness.com, there are many huge companies that simply don’t make a profit. This includes Twitter, Uber and even Amazon. The reason they don’t make a profit is simple; they use the capital effectively and re-invest into their companies. Companies can continue to run as long as employees are paid and expenses are accounted for. Every other penny can be spent on growth. This could mean hiring new employees, expanding their services or even running promotional campaigns.

 

If your business is financially secure, then the money you make can always be re-invested into your company to grow it. If you’re forced to take out a loan in order to have a chance to grow your company, then you might be struggling too much financially and it will be a good idea to take a step back and rethink your growth strategy. Attempting to grow a business without being financially stable is a terrible idea, and you need to change your approach so that you don’t put your company or your staff at risk. Remember that making a profit doesn’t necessarily mean you’re growing your company unless you invest it meaningfully.

Upgrade your home business - image lunch business deal adults shaking hands in agreement

Image Credit

 

Final words

 

Growing a company takes time, effort and a lot of money. Unless you have access to all three of these components, it’s best not to get ahead of yourself. Take it slow, build your audience and plan ahead for every situation you could potentially get yourself into. If you rush ahead and try to grow your company when it’s not ready, then you’ll encounter all kinds of issues. You’ll be understaffed, you won’t have a sustainable way to grow your audience and you’ll be pressured to take a loan and push yourself further into debt.

 

This is a contributed post.

Related

  • MOVING YOUR HOME BUSINESS AWAY FROM HOME: KEY CONSIDERATIONS

  • WHAT’S HOLDING YOUR HOME BUSINESS BACK?

  • YOUR BUSINESS IS ONLY AS STRONG AS WHERE YOU RUN IT

Subscribe so you never miss a post.

Please share this post.

Time to Upgrade Your Home Business? image store front with striped awning neededinthehome

Join the newsletter

Subscribe to receive our latest articles and promotional content by email from NeededInTheHome

Your request has been received and information has been sent to you. Please check your email! IMPORTANT! To make sure that our mail reaches your inbox correctly and is not blocked by mistake, please add our email address to your whitelist - amy@neededinthehome.com to your email address book and/or to "whitelist" (trusted senders).

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Please Share:
9   

May 8, 2018 by admin 1 Comment

Support My Work

Reader Interactions

Comments

  1. Maha Mohsen says

    May 31, 2018 at 4:04 am

    It’s an important thing that you must have a plan to grow your staff working
    , improve your business and get more customers , good employees are important to the success of your organization

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

  • pinterest
  • mewe
  • twitter
  • instagram
  • subscribe

Hi! I’m Amy!

Featured Article:

Join the newsletter

Subscribe to receive our latest articles and promotional content by email from NeededInTheHome

Your request has been received and information has been sent to you. Please check your email! IMPORTANT! To make sure that our mail reaches your inbox correctly and is not blocked by mistake, please add our email address to your whitelist - amy@neededinthehome.com to your email address book and/or to "whitelist" (trusted senders).

There was an error submitting your subscription. Please try again.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit
Note: Some links in this post are affiliate links, which means I receive a commission if you make a purchase. Affiliate relationships include, but are not limited to, Online Fabric Store, Amazon Associates, Walmart.com, and Etsy. As an Amazon Associate I earn from qualifying purchases.

Categories

Support My Work

Before Footer

NeededInTheHome - Homemade. Home Interiors. Home Life. We give advice on all things "home." NeededInTheHome is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites. As an Amazon Associate I earn from qualifying purchases. WALMART.COM SM is a service mark of Wal-Mart.com USA, LLC and Wal-Mart Stores, Inc.

Privacy Policy, Disclosure, Accessibilty, Terms of Use, Copyright

Disclaimer, Do not sell my personal information.

©2017-2022, NeededInTheHome.com. All rights reserved. No content on this site may be reused in any fashion without written permission. By using this site, you are agreeing to the site’s terms of use.

  • Home
  • About
  • Contact
  • Start An Etsy Shop
  • Moving
  • Buying Abandoned Storage Units
  • Resources
  • Amazon Influencer Page
  • Shop

Copyright © 2022 · Interior Pro on Genesis Framework · WordPress · Log in