The start of a new year brings a sense of rejuvenation. Many make resolutions for health and prosperity with the hope of bettering themselves. But resolutions aren’t limited to individuals, and this time of renewal is an opportunity for businesses to reflect on the previous year and evaluate their strategies and goals.
If you’ve seen consistent success and production is at its max capacity, maybe your New Year’s goal is a business expansion.
Here are a few signs it may be time to expand:
You’ve outgrown your current space
A good indicator that it’s time to expand is when purchasing new machines and hiring more employees becomes an obstacle. Your day-to-day operations shouldn’t suffer as space gets tight. Factory efficiency is key to cutting costs and improving production and this is at risk when you’ve exhausted your current resources.
You have a loyal customer base
According to Emarsys, loyal customers spend 67% more on products and services than new customers. Having a loyal customer base is a good measure of long-term success.
Gaining valuable feedback through NPS surveys will help you understand which customers are promoters, passives, or detractors. Promoters are the customers that score you a 9 or 10 and are more willing to recommend your products or services to others. Passives, those that score you as a 7 or 8, are satisfied with your products or services but likely won’t go out of their way to recommend your business. Detractors fall under the 1-6 score range and are the unsatisfied customers. Using the information from your NPS score will help you understand what actions are needed to turn a detractor into a promoter and ultimately a loyal customer.
The time is right
Expansions are no small task regardless of business size. They require careful planning, time, and money so it’s a decision that shouldn’t be made hastily. But as the saying goes, “timing is everything” and if you have planned sufficiently and the right opportunity presents itself, go for it.
Your goals are changing
It’s hard to prepare for the future when the present isn’t concrete. Who could’ve imagined a global pandemic in 2020? It’s situations like these, where strategies adapt, and goals change. This practice isn’t exclusive to COVID-19 and many companies find themselves changing their business model to keep up with the current environment.
Manufacturers’ business strategies may evolve when new needs are identified. Adding new product lines or modifying existing ones will help companies stay ahead of competitors in an ever-evolving landscape.
Expanding operations is an exciting milestone, one with risks and rewards. With intensive planning and the proper resources, it can lead to more streamlined operations and business growth.
If you decide to move forward with an expansion, Boulter can help. We understand the true value of your production schedule and have the capabilities to minimize downtime and get your operations up and running again.
If you’re ready to schedule a Zoom meeting with a plant relocation expert, click on the link below.