International business leader Levon Termendzhyan has been working in the gas, oil, and energy industries for several decades. The equity owner of Viscon International and Viscon USA, he began his entrepreneurial career by leasing gas stations as a teen. Since then, Levon Termendzhyan has owned several gas stations in Southern California and has expanded his family business to include several fuel delivery trucks and diesel truck stops throughout the area.
Many entrepreneurs struggle with figuring out when to expand their business. If expansion happens too early, the business might fail; expand too late and the demand may be gone. The following are several signs to help entrepreneurs recognize when to grow their company:
A Loyal Customer Base
When customers repeatedly return to purchase from the same company, it shows that there is a continual demand for the company’s services or products. This demand keeps businesses running as they attempt to expand. Additionally, it demonstrates that there is enough demand to support another location.
Strong Team of Employees
Expanding a business means employees must take on new challenges and more work. Due to this, they must be capable of handling the increased pressure. A weak team can lead to the ultimate failure of a company expansion, regardless of whether the business has a lot of sales or customers.
Cash Flow is Positive and Steady
Sales alone aren’t enough to determine whether it’s time to expand a business but cash flow is. Positive cash flow means a company is making a lot of sales and getting paid on time. It is also is a sign that business leaders are managing their cash flow properly. This is essential for ensuring a business has the financial support it needs to grow.