Guiding your life’s biggest financial moments

Small Business

Make no critical mistakes when expanding your business

Deciding if and when to develop a business is not an easy task.

When partners disagree, it also adds some tension to the mix, especially if they’re married.

For Chris and Emily Elias, it was a debate about whether to expand their existing mobile grooming business, The Ruff Life, based in Massapequa, New York, to other cities, or to offer a local brick and mortar location that had them at a standstill.

“Taking this nationally, you’re talking about hundreds of millions [of dollars in sales]”Chris Elias, 37, said on CNBC’s” Money Court “.

The company is on track to achieve $ 1.4 million in revenue this year, he noted.

Yet his wife believes there is still more money to be made locally.

“We know our customers love us already. I know the demand is there. National is not the way to go,” said Emily Elias.

It’s not uncommon for partners to disagree on the next step in their business, or even the opportunity to grow, said small business expert Barry Moltz, who owned his own business and is now a consultant.

“The key to success is not making fatal mistakes that will kill your business,” he said.

This means you don’t invest more money than you can afford to lose, especially when testing new concepts, Moltz explained.

Before you decide to expand, make sure you have additional profits or money to reinvest in the business. The Eliases, for example, have $ 100,000 to invest in their expansion.

It is also important to understand your “why”. It could be a bigger profit, a way to diversify or grow in order to sell the business, for example, said Moltz, who has worked with married partners who disagreed on plans. expansion.

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Next, figure out how to test the growth strategy without going all out and decide if you need to test more than one thing at a time.

“You want to dip your toe in and see what works and what doesn’t,” Moltz said.

Evaluate the results and, from there, double down on the strategy that worked or find something else if the results were bad.

Given that the Eliases have already enjoyed success locally, O’Shares ETF chairman Kevin O’Leary, who chairs “Money Court”, decided the couple should grow by deploying more mobile vans in their area. current. He also told them to come up with a business plan for a possible brick and mortar location.

The couple are now moving forward with the purchase of two more pickup trucks and are happy with O’Leary’s decision, they recently told CNBC.

“There are millions of pets here,” said Chris, who now realizes that it makes more sense to grow locally than nationally right now. “The money is there, the demand is there.

“Sky is the limit.”

They have yet to develop a business plan for a brick and mortar location. In fact, Emily isn’t sure now if this is what their future holds.

Once they saturate the mobile phone market, they will look to expand the services they offer, whether it is a defined location or another mobile service, such as a health club. form, a dog training or a dog sitting.

“You have to offer more services,” Emily said. “The business is there, our customers are there, the money is there.”

TO AGREE: CNBC’s “Money Court” starring Kevin O’Leary airs Wednesdays at 10 p.m. ET.

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Disclosure: NBCUniversal and Comcast Ventures are investors in Tassels.

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