One of the most accurate ways to determine when to grow your business is to use data from your ERP software. The following three types of information will help you decide.
1. Are employees well utilized?
Ideally, you plan and document your workforce’s time carefully and meticulously so that you can bill for the maximum number of hours possible. Using data from your ERP software, you can see where staff are being under or over-used. With this data, you can reassign staff if needed, and even know whether you need to hire more employees.
2. Can you handle more projects?
In order to successfully grow your business, you need to be able to handle the projects you already have. This means being able to deliver projects on time while staying within budget. If you’re accomplishing these things already, you may have room to grow.
However, if you’re struggling to fulfill these two goals, growing your business will only exacerbate the problem. The key is to find out where these problems are occurring and fix them before growing your business. Use information from your ERP to find out if the problem is due to poor project management or simply because of lack of resources.
3. Do you have a healthy cashflow?
You should only grow your business if the following are all true:
– You have strong sales
– You receive plenty of repeat business
– You have positive cashflow
Use your ERP data to confirm these three things. If you can’t prove them, now is not the time to grow.
Using data from your ERP software, you can confidently pinpoint the right time to grow your business. Make sure to examine the three types of data listed above to make sure you’re making a healthy choice for your business.