Green light, yellow light.

What are some of the signs that it may be time to branch out? "Cash flow," says Tom W. Williams Jr., managing partner of Williams, Adley & Co. L.L.C., a CPA and management consulting firm headquartered in Oakland, California. "When your business is generating more than enough money to provide you with a comfortable living, that's a sign you're ready for expansion."

A similar thought is echoed by Jana Matthews, founder of Boulder, Colorado-based consulting firm Boulder Quantum Ventures, and co-author of Leading at the Speed of Growth." Journey from Entrepreneur to CEO (Wiley; $24.99). "You can tell it's time to expand from your incoming orders," says Matthews. "When people begin to call all the time and you can barely keep up with the business as it comes in--that's one of your growth signals."

Bruce Phillips is a senior fellow in regulatory studies at the National Federation of Independent Business (NFIB) in Washington, D.C. "Our latest survey, Small Business Problems and Priorities, released in 2004, showed some of the concerns that growth can cause," he explains. Among the study's findings were the following:

* Controlling their own time is often a problem for owners of rapidly growing firms.

* Health and safety regulations probably occupy a greater share of a business owner's time when the firm is growing rapidly. Many small companies are exempt from some regulations, but others can become burdensome when a business is quickly expanding.

* The frequency of tax withholding deposits is another problem that becomes more bothersome as business sales rise fast. IRS regulations, such as more frequent withholding deposits, then become a larger issue. "The first step to take in dealing with growth is to add good people," says Matthews. "As the owner, you've probably been doing a bit of everything, making all the decisions. You'll never really grow that way, though. You need to add talented people and delegate responsibilities to them." Putting together a good staff can be invaluable as you strive for profitability and prosperity. Bringing on additional people does not always mean hiring a full-time staff. You can use temporary professionals to provide help during peak periods.