Growing Up

Many entrepreneurs either expand their businesses before they're ready or grow too quickly. Donald Reimer, president of The Small Business Strategy Group in Southfield, Michigan, recommends asking yourself the following questions before proceeding with expansion plans:

1. Have you built a strong management team?

2. Have you developed a strategic plan, and does the proposed expansion mesh with your overall goals?

3. Have you or a consultant conducted a strategic audit or assessment to evaluate your company's strengths and weaknesses?

4. Have you discussed the expansion with your board of directors and/or an outside consultant, and do they support it?

5. Do you have the necessary financial and human resources to handle an expansion?

6. Have you examined the external factors affecting your business (industry trends, the economy and the like)?

7. Have you compared your company's performance with other companies of similar size, and is your company performing well by comparison?

This article was originally published in the July 1996 print edition of Entrepreneur with the headline: Growing Up.