03/ 22/ 2006
So your business is a success, and you're ready to take over the world? Here are a few tips on evaluating your basic needs before expanding your business.
Physical space
If you started your business out of your dorm room or parents’ house, perhaps you feel that now that business is doing well, you need more space. Think about other options before you begin searching the want ads for available storefronts, which often have expensive rents and require cosigners and extensive credit histories. If your business is product-oriented, visit area stores and see if they carry locally made merchandise. Ask if they'd consider selling some of yours. Though these shops will, of course, take a cut of the sale, it might be worth it if they are willing to take on enough of your product to increase profitability and customer awareness. Craft fairs and art shows are also excellent places to sell merchandise, and renting a booth is usually only a one-time commitment.
If your company is service-oriented, look into leasing shared office spaces, which are cheaper than going it alone and offer shorter-term leases. You could also see if there are any existing companies in your area looking to rent out their extra space. If you're living in the dorms and don't really need the space but simply an atmosphere that will allow you to get your clients’ work done, talk to your campus housing office about moving into a private room. These are often smaller and more expensive than shared rooms, but it might be worth it if the noise, messiness and chaos of sharing a living space interfere with your productivity.
Advertising
Maybe so far your business has been carried by word of mouth and flyers tacked to campus message boards, and you're thinking of formalizing your advertising methods. First figure out how much you can afford to put toward ads and then do some demographic research. What is the average age of your customers? What medium is most likely to reach them? Start small, perhaps taking out an ad in one or two local publications. You don't want to start advertising everywhere at once, because then you won't be able to tell which ads are working and which aren't.
Hiring
If you have the money but not the time to devote to expanding your business, you may be ready to hire someone to help out. This is a crucial step to growth but also a tricky one. You'll need to find an employee who’s trustworthy and has a good work ethic. If employees will be working with the public, it’s important that they're presentable and friendly as well. Figure out how much you can offer for the position in advance and hold interviews. You might want to tell the person you choose that you can only offer a temporary position. Then, if business holds steady and the employee is a good fit, you can offer a more permanent job. If not, there won't be any hard feelings.
Many young entrepreneurs hire their friends to work with them, which has benefits and drawbacks. While you already know what kind of person they are, you don't know how you will handle the stress of working together, which often puts strain on friendships. Instead of hiring your closest friends, who might not take orders from you well, you might want to go the friend-of-a-friend route. Then you know something of their qualifications, but will still be comfortable in the role of their boss.
A word of warning
Even if you know that your business is ready to grow, make sure you're ready to grow it. Re-evaluate your other time commitments and make sure you can fit in more work. It’s better to stay small for awhile than commit to business orders you can't fill or let your studies slide. Balancing is a key skill for young entrepreneurs, so be sure your expanding business doesn't overshadow the rest of your life.
