Growth can be a risky proposition. Without proper planning or insight, it’s all too easy to fall behind on sales, make cash flow mistakes and struggle with customer service. On the other hand, expanding at the right moment allows you to reap major rewards. So, how can you know when your small business is ready to scale? Here are a few signs to take note of.
1. Positive cash flow
Money is always a great indicator to reflect where your company stands. But it’s one thing to generate a profit, and another to see how you’ve been able to sustain profitability over a period of time.
Growing your profits also means you can create a positive cash flow for your business that can help when it’s time to scale, since your business costs will naturally increase, and it will take a while before you start seeing the returns.
Use your current cash situation to plan and project future revenue and expenses so you can be well-prepared for unexpected setbacks. This also helps reduce the risk of your growth efforts sending you to cash problems
2. Demand is exceeding capacity
It’s a good sign to see if your products are selling well, but if you are constantly faced with more orders than you can fulfil, then it may be time to think about how to boost your production and meet customer demands. This can mean increasing your inventory and getting a bigger storage warehouse.
While it’s great that you’re offering something that is in demand, you want to be sure that it is still sustainable. If your business is seasonal or only benefits the most from holiday sales, then it may not be the right time to start scaling.
Our property at 38 Ang Mo Kio Ind Park 2 offers storage warehouses for rent
where you can store your goods and process them for shipment efficiently. With a newly refurbished interior, there are 3 connected buildings with multiple storeys and a corporate frontage. A feeder bus is available right at the entrance to bring tenants to Ang Mo Kio MRT, while more bus services can be found within minutes away at the main road. Units in the property start from 4,903 to 6,225 sqft with 2.5kN/m2 floor loading capacity and 4.5m ceiling height. Apart from its standard capabilities and offerings as a general B1 industrial building, there are also in-house products such as a weekend marketplace, event hall for rental, self-storage and lockers. Our subsidiary, Work+Store is also located within the premises to offer storage and process units, suitable for start-ups, e-commerce and entrepreneurs. Other facilities include in-house canteen, season parking for cars & heavy vehicles, 3 cargo lifts and 4 passenger lifts.
3. Strong core team
Your small business is only as strong as the people who help run it. It’s important that you have a team that’s adept at handling problems and committed to helping you execute the goals in your business.
Scaling and expansion come with challenges and stress, so you need to be able to trust and have the confidence in the ability of your team to handle the tasks. Of course, too much stress and pressure can lead to burnout – always look for opportunities to hire new talent and avoid employee dissatisfaction so everyone can put in their best efforts.
4. Proper infrastructure in place
Without having efficient systems, attempting to grow a business can set you up for failure instead. For instance, knowledge-sharing tools can help onboarding new employees stay updated on the company processes. Building an internal database of information also ensures your business continues to run smoothly.
If there is a massive influx of sales, your team can refer to internal procedures on how to handle and process each order correctly. By putting workflows in place, it keeps your company organised and more prepared to face the challenges of expansion.
In preparation for your business expansion, ensure you have the right space ready for your growing operations and the team as well. Our property at 34 Boon Leat Terrace offers units suitable for warehousing and ancillary office purposes. Situated at the fringe of the CBD, this 6-storey warehouse is also accessible via West Coast Highway and Pasir Panjang MRT station. Units come in a variety of sizes, from 232 to 4,752 sqft with selected furnishings including aircon, lights, carpet and windows – offering an optimal work environment for your business. There are 4 loading bays and 24-hour access system to support your operations. Season parking is also available for cars and heavy vehicles.
Don’t miss our ongoing promotion! Enjoy 50% off your lease when you sign up for industrial spaces, warehouses and small business offices for rent
before 31 March 2021. Terms and conditions apply.