According to the Small Business Administration (SBA), there are approximately 30.2 million small businesses in the United States. If you are a small business owner, you firmly understand the challenges and rewards that come from being an entrepreneur.
One of the biggest milestones for all small business owners is reaching the point where you need to expand. Whether that means opening a new location, hiring your first staff members, or broadening your service offerings, you should be proud of your achievement.
As you prepare to expand, there are new and important things for you to think about.
Create standard operating procedures (SOPs)
If you’re the type to carry information about your business around in your head but never write it down, you aren’t alone. When working as a team of one, or with a small team of freelancers or even family members, you can get away without having standard operating procedures (SOPs).
If you are expanding your business, it is finally time to create critical SOPs.
SOPs serve as guided instructions that explain how to perform various tasks. This can include everything from instructions on how to clean equipment, complete a specific computer-related task, or reach out to clients.
If you’re unsure about which SOPs to create, consider which tasks are critical to the operation of your business. In your absence, what instructions are important to have written out so that someone could step in for you? Also, if you plan on training staff to handle certain tasks in the near future, write out SOPs for each one.
Establish a separate bank account/credit card
If you haven’t done it yet, your small business expansion may require you to establish a separate bank account and credit card. According to Forbes, there are many advantages here. Not only do separate accounts make it easier to track business expenses, but they also simplify your taxes, enhance your credibility, and pave the way for additional growth.
Consider forming an LLC
Another important consideration at this stage is whether to formalize a business structure. The formation of an LLC (limited liability company), for example, is one of the easiest choices available for U.S.-based businesses and provides a host of benefits.
Although there are initial time and financial investments, this process can save you significant time, stress, and hardship down the road. In the simplest of terms, forming an LLC ensures that you’re not personally responsible for your organization’s debts. You can also enjoy certain tax advantages, reduced paperwork, and flexibility.
If you decide to form an LLC, start by reviewing your state’s regulations. You can either work with an attorney or tap into a formation service to save money and expedite the process. If you’re unsure about which business structure to choose or how it can benefit you, work with an accounting firm to understand the finer details and how this affects your tax liability.
Promote your business’s growth
Expanding your small business is an exciting — yet busy — process. Amid the frenzy, don’t forget to promote your expansion in every way that you can.
Your customers and colleagues love to celebrate your wins with you. Announce your company’s growth on social media, in your email newsletter, on your website, and everywhere else you can. If you are opening a new store, launching a new product line, or achieving some other big milestone, consider writing a press release. Press releases are a fantastic tool for getting media attention — especially when there is a unique local angle. Instead of being quiet about your growth, announce it to the world. Leverage this attention to help grow your business even further. If you find yourself overwhelmed, consider consulting a marketing agency. They may be able to guide you in the right direction.
No matter how you plan to expand your business in 2021, take the time to celebrate and enjoy this moment. As you make these important considerations, be proud of what you’ve achieved. It is through this momentum that you will be able to tackle whatever is up next in your entrepreneurial journey.
Let Us Crunch the Numbers
Whether you need financial consulting, accounting assistance, or help with your budget, Crunch Consulting is prepared to help crunch the numbers so you can stay focused on the bigger picture. Reach out today for a free introductory consult.