You might think the additional volume will make up for the shrinking margins, and it could but you’re probably looking at some serious cash outlays and cash flow issues, not to mention the time/distraction that will take you away from your business.
Some of the expenses you should look at/plan for are:
Cost of space/build out costs
Payroll and benefits
Lawyers and other outside services
How do you plan for growth?
Can your business sustain the growth?
In the case of my workshop Q&A the person asking the question has a very unique business where growth into a commercial kitchen might alter the taste of the product, which risks alienating his core customers. Since he’s thinking about all this as he’s starting up, he can plan for all of these factors.
How could planning for growth change your pricing?
Will it change your product?
If you’d like to talk about any of this, please give me a call 917-825-4499 or shoot me an email firstname.lastname@example.org.
Sign Up for a Financial Report Checklist
— you’ll always know what you’re looking for and there’s a space so you’ll know what you have to follow-up on.