As the economy climbs back on its feet and businesses try to ramp back up to pre-pandemic production, many industries are struggling to find the help they need. But why?
The reasons behind the current worker shortage are varied and complicated. A recent report shows that nearly two-thirds of global leaders have struggled with labor shortages in the past year, driven by factors like retiring workers, voluntary resignations, and skill mismatches.
The pandemic forced millions of people out of work. But since then, many have opted to remain out of the workforce.
Many people are worried about their health. Some are caring for their families. Others are reassessing their career path altogether, choosing to get out of busy cities and overly demanding jobs. Another factor is enhanced unemployment benefits, which some say are providing minimum wage workers with more income than if they went back to work.
It’s a complex situation, and it may not last forever. But regardless of how or when it gets resolved, this worker shortage puts business owners in a predicament—especially if you want to grow.
Why is Business Expansion Crucial for Organizations?
Business expansion isn’t just about growing for the sake of it. This is essential for staying competitive and unlocking new opportunities. As your company expands, you can tap into new markets, attract more customers, and increase revenue. Growth also enables you to improve efficiencies, hire top talent, and build a stronger foundation for long-term success. Without expansion, businesses risk stagnating, which can leave them vulnerable to market changes and competitive pressures. By focusing on strategic growth, you’re positioning your business for future success, even in challenging times.
Finding a New Path to Growth
If you’re trying to expand your business right now, choices are limited. A small hiring pool means it’s even harder to find the right level of talent with the right skills.
To solve the problem, you might think you can take on more work yourself. But how much more can you realistically manage? You might try and put the extra burden on your team. But with the job market surging, the last thing you want to do is burn them out and push them out the door.
What can you do?
The good news is that your business is already running. You may not be able to grow as fast as you’d like, but you don’t have to take it on yourself, and you don’t have to downscale.
Instead, look at improving your operations. When you implement systems and processes to make your business run more efficiently, you can do more with what you already have.
How Can Businesses Assess Their Readiness for Expansion?
Before diving into business expansion, it’s important to make sure your organization is truly ready to grow. Expanding too quickly without the right foundation can lead to operational challenges, financial strain, and even burnout for you and your team. By evaluating key areas of your business, you can determine whether you have the resources, processes, and strategy in place to support growth. Taking the time to assess your readiness now can help you avoid setbacks and ensure a smoother expansion.
Here are some ways to assess your readiness for expansion:
- Evaluate Your Current Operations
Are your systems and processes running efficiently? Streamlined operations are crucial for handling an increased workload. - Assess Financial Stability
Do you have the financial resources to support expansion, including covering upfront costs and potential slow periods? - Examine Team Capacity
Can your current team handle more responsibilities, or will you need to hire additional staff? Make sure you have enough capacity to meet new demands. - Identify Market Opportunities
Is there demand for your product or service in new markets? Research whether there’s a real opportunity for growth. - Set Clear Goals
What are you hoping to achieve with expansion? Having well-defined goals helps you stay focused and measure success as you grow.
Taking these steps can give you a clear picture of whether your business is ready to expand, allowing you to make informed decisions and prepare for sustainable growth.
Three Ways Operations Can Keep Your Business Expansion Goals on Track
1. Do more with what you have
If you take the time to sift through your business processes with the goal of efficiency, you’ll likely uncover several ways to simplify and systematize how work gets done.
When we consult with clients, they’re often surprised to discover how much time they get back by improving operations. With sound processes in place, you need fewer people to do the same amount of work. That means you can reallocate some of your team’s workload to focus on expansion efforts.
Implementing these operational improvements now yields long-term benefits. Over time, you’ll be able to see where you can automate additional tasks and free up even more resources down the line. Another side effect? You’re setting yourself up to scale when you’re ready.
2. Outsource for now
The “fractional” team model is on the rise, and for a good reason. Businesses can now get the specialized skills they need to get the work done without hiring more employees. For example, we act as your fractional Operations Department, managing all things operations, including implementation. You can start with as few as five hours a month and incrementally add more as needed.
A fractional business model is flexible and scalable, meaning you can outsource work at a scalable pace until you’re ready to hire and/or find that perfect full-time employee.
In other words, you get a stopgap solution to reinforce your new systems, so operations run smoothly. Because you don’t have to take on more tasks, you can focus on quality work, keeping clients happy, and ensuring your team’s workload remains manageable until you’re ready to grow.
3. Build the foundation for future growth
When your new systems are in place and you’re delivering work at a steady pace, you’re ready to start looking for the perfect long-term hire—even if it takes a while in this job market.
Hiring is another area where fractional operations can help. Because we work so closely with our clients to set up improved systems, processes, and automation, we know their business well enough to help with the hiring process. When you’re ready to add a full-time operations role, our team helps you with the new employee selection process (resume culling, interviewing, onboarding), training, and supporting them to take over our work. And while your new hire ramps up, we continue to manage the work to avoid any delay with your deliverables.
Keep Your Business Expansion on Track
The worker shortage may be slowing you down, but it doesn’t have to derail your expansion efforts.
With a fractional operations partner, you can implement processes and systems for business expansion that enable you to do more with what you already have, outsource work while you search for employees, and build a strong foundation for future growth.
Find out how Beyond the Chaos can work for you.
Frequently Asked Questions:
How can potential risks be identified and managed during business expansion?
To identify risks during expansion, businesses should evaluate areas like financial stability, market demand, and operational capacity. Managing these risks involves creating contingency plans, setting realistic goals, and monitoring progress regularly to address any issues early.
How can businesses keep their organizational culture intact during expansion?
Businesses can preserve their culture by clearly communicating values and expectations to new employees, maintaining strong leadership, and encouraging open communication. Regular check-ins with teams and promoting the same company values in new locations or departments will help keep the culture consistent.
What should businesses consider when seeking external financing for expansion?
When seeking external financing, businesses should assess their financial health, consider how much debt they can handle, and understand the terms of the loan or investment. It’s important to have a clear plan for how the financing will be used to fuel growth and repay any debt.
What are some financing options for business expansion?
Financing options for expansion include bank loans, small business grants, venture capital, or lines of credit. Businesses can also explore crowdfunding or government-backed loans depending on their needs and eligibility.
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