Expanding Your Business is More Than Just a Larger Space

by | Mar 24, 2020 | Business

As your business grows, so does the need to increase production capacity

however to simply focus on a larger space and more equipment, may actually result in a less efficient and profitable operation. 

Many owners believe by simply increasing production, the result is a more efficient operation with better bottom line. 

That’s not necessarily the case.

Expanding a segment of the business is just one piece of the expansion puzzle

To effectively grow a business and be profitable, all departments must work in unison towards the primary goal of betterment 

Internal operational items to look at and likely adjust in your current business during an expansion 

  • Culture and old habits 
  • Process & procedure 
  • Order process & frequency 
  • Inventory par levels 
  • Inter-company product transfer 
  • Department accounting practices  
  • Paperwork stream 
  • Documentation
  • Company communication  

Each department must be on board to actively participate in some level, even if the department is mildly affected 

  • Executive 
  • Accounting
  • Receiving 
  • Production 
  • Human Resources 
  • Administration   
  • Purchasing 
  • Logistics 
  • Warehouse 

Common oversights a company makes prior to proceeding with expansion

The executive level falls short in detailing expectations of the overall process 

Assign an internal point person to be the communication and conduit between leadership and departments on updates and issues 

Managers focus on their department’s responsibility and forget to share information with others

The timeline is overly aggressive and budget is not realistic 

Important steps to have in place to make the expansion move smoothly and timely 

  • Leadership clearly layout goals, expectations and realistic timeline to all department heads 
  • The point person regularly meets with each department to see if tasks and timeline is inline  
  • Department heads and the point person meet on a regularly scheduled basis to share where they are in their process and responsibility
  • The point person meets and updates executives on a regularly scheduled basis on progress and unforeseen events
  • The CEO routinely sends out a company letter on overall progress      
  • Ease into the larger area over a 2 – 4 week period, opposed to quick transition without adequate training of nuances    
  • Get feedback from employees on new operation and listen to suggestions from operators

There are a number of factors to consider and tasks to juggle during a company expansion.

Understanding the process and conducting in a logical sequence is how Darryl’s Ice Cream Solutions can help you.

We help businesses in all areas of their operation during the expansion process and proven to be effective in keeping to timeline and estimated budget.

Save time and money, get in touch with Darryl asap.    

Darryl David
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