Despite the hurdles the American economy faced over the last decade, small businesses are alive and growing. In fact, small businesses still make up the foundation of American business. Forbes reports that more than half of the working population work in small businesses.

If your business is growing and you are thinking about expanding, there are some things you must consider first. Here’s a look at how you can decide if your business is ready to grow or if you should hold off for now:

Is Your Demand Beating Your Supply?

If your customer base has been steadily expanding, you may be reaching the point in which you can no longer handle the demand for your products or services. Perhaps the wait list for your services is becoming longer due to an increase in demand, or you may be having trouble supplying retailers with your product. Regardless, at some point you need to consider hiring on new employees and expanding your stock to meet demand. Oftentimes, you may need to provide secondary products and services that are complimentary to your primary trade to grow your business. If this is the case, consider what you can supply that is parallel to your current offerings.

Are You Thriving?

Another good sign that you are ready to expand is if your business is thriving while others are failing all around you. The birth and death of companies is usually relatively static. TheSmall Business Association reports that about 10 to 12 percent of companies with employees open every year and about 10 to 12 percent of companies also shut down.

However, if businesses in your industry are closing and you are continuing to grow, it’s a good sign that it’s time to expand. Reach out to your customers and find out why they’ve chosen you over competing businesses in your field. Oftentimes, your customers give you the best insight as to why you are flourishing, so you can keep focusing on those areas.

Are You Operating Efficiently?

Many business owners think that expanding a business only means hiring more employees or renting a bigger warehouse; however, there are many upgrades to consider. For example, if you still balance your books by hand, you should upgrade to online software. Companies such as Sage One provide online enterprise software that prepares you for the next step in your businesses evolution. This helps you ensure that you are running at your peak efficiency before you expand. Remember, any problems you have now will only grow with your expansion.

Are Your Major Tasks Changing?

For many startups, the founders are busy with the day-to-day tasks for much of the business’ infancy. As the owner, you are on the sales floor interacting with customers, you are in the back room counting your inventory and you are searching for new leads in the community. However, as times goes by, you can delegate those everyday tasks to other employees. This lets you focus on the larger strategic planning for your company.

If you find that you spend more time running the business and less time handling the day-to-day work, it may be time to expand. While you may have once been a jack of all trades, as your business grows, you can find more specialized labor to help you.