When you start a new business, you’ll write a forecast for growth over the first few years and plan your expansion accordingly. But if you’re lucky, your sales will exceed your expectations and you’ll start bringing in customers a lot faster than you first thought. That’s a brilliant position to be in, but if you don’t capitalize on that big increase in sales, you could miss a big opportunity to grow your business. A sudden spike in sales is going to put a lot of strain on your business as you struggle to meet that demand, here are some great tips to help you keep on top of it.
While your initial forecast may have made allowances for some level of growth, it’s unlikely that you will have budgeted for such an unexpected increase. In order to meet that demand, you may have to hire more employees, move into a larger office space, and increase your manufacturing output. That’s all going to cost a lot of money and if you aren’t bringing in a huge amount of revenue yet, you’ll need to find it from somewhere else. It’s sensible to start putting some aside when you start out to deal with a situation like this but it’s not always possible. If you don’t have the cash there, short term business loans are your best option. Long-term loans will leave you with debt hanging over you for years to come but most short term loans will be paid back within just one year. You can borrow the money you need to meet the extra demand and then repay the loan with the profits that you make.
This is vital because you’ve obviously done something right to get that sales increase in the first place and you need to repeat that in the future. The first thing to do is to look at who your new customers are. You might find that they’re all from a similar demographic that you might not have originally thought would be your target audience. If that’s the case, you can alter your marketing methods to target that new audience. Beyond that, look at your website traffic and any changes you’ve made there. If the sudden spike in sales coincides with a load of new content that you’ve uploaded to the site, you know that you should be doing more of the same. Understanding why you’ve found that success in the first place is the key to sustaining it.
Think Long Term
Your first priority should be fulfilling those orders and making sure you don’t let any of your customers down but it’s important that you don’t just think about the short term. This is a good time to start expanding your business and looking for opportunities to break new markets in the future. Once you’ve understood why you’re seeing a sales increase and you’ve dealt with it in the short term, start updating your operation so you can continue to operate at that level indefinitely.
A sudden spike in sales marks a turning point for your company. If you capitalize on it, you’ll establish yourself and start to grow but if you don’t, you’ll stagnate and risk folding completely.