It is a fact of life that any successful and well run business is going to grow and expand over time – both in terms of staff numbers, the demands on the business and most importantly of all, turnover and profit.

Every healthy company has to be allowed to develop, and the key to growth is to successfully manage the process. Growing too quickly in the early years is unfortunately one of the most common reasons for business failure.

Expansion can be a part of a well thought out strategy but it can also sneak up on you simply through organic growth or increased demand for the services and products you are providing.

When it comes to organic growth expansion can happen quite naturally as you gradually take on more resources to deal with increasing demands and pressures. One by one your team can grow as you recruit new staff to deal with the extra work, and before you know it the business has doubled in size.

For small businesses, this type of organic growth and gradual expansion can be fairly easy to manage providing you have the right building blocks in place.

Growth is all about striking the right balance and taking a measured approach. Here are just a few questions to take into account before you take the potentially expensive decision to expand your office or add new members to your team:

1. In these days of fast developing technology do you need to take on extra staff to cope with demand?

It might save time and money in the long run to invest in new technology rather than taking on new employees. A little bit of research into what is available on the technology market can save a lot of expense in the long run. Spending on new software or computers might actually be a better solution than taking on new staff.

2. Is your current set-up flexible enough to cope with fluctuations in demand?

When it comes to small firms in the early days of their development it can make a big difference to take a flexible approach to business. If you have staff who have the training and experience to carry out a number of different roles it means that people can easily adapt to cope with the changing demands of the business.

3. Can any jobs or tasks be outsourced to freelancers?

The world of work has become much more fluid and flexible as a result of the recession and the internet. There’s no such thing as a job for life in the current environment and more people are choosing to go down the freelance route. Freelancers come from all levels too from semi-retired professionals with broad experience at board level, through to someone to help in your warehouse. With a rapidly expanding market it makes perfect sense to take full advantage of this new reality. Using freelancers is not only cost effective it also offers greater flexibility for businesses. You fill a role as and when you need it and avoid the cost and hassle of taking on full-time staff.

4. Is everyone on your team working to their full capability?

Perhaps the answer to increased workloads lies within the office itself rather than the external factors that affect your business. Sometimes it pays to take a close look at the way your outfit operates and how your team functions. Often you can improve performance and productivity simply by changing things around within the office. While some staff are being overstretched, others might not have enough work to keep them busy throughout the day.

5. Who can you go to for advice?

Don’t try to navigate your business expansion alone, find a business mentor who can offer individual support and guidance, and will be able to offer advice on finance and banking matters. Other sources of support can be found at Mentorsme (www.mentorsme.com), the Federation of Small Businesses, or your local Chamber of Commerce

When you are starting out on the expansion journey, it is always reassuring to get as much advice or support as you can about where you are heading.