There is a lot more information available
on starting businesses than growing them. There are some
basic steps every business must go through to start, but
after they get up and running, the steps they need to take
to grow vary by business type, industry, etc. The owner has
to decide how best to grow the business by analyzing a
number of factors. Some of these include:
- corporate mission
- strengths and weaknesses of the business
- financial resources: existing and potential
- customer needs
- competitive influences
- life cycle of existing products
- profitability of potential products
- human resources: sufficiency and capability
- sales and service capability
- research/development time and expense for new products
- business environment: economic conditions, access to
raw materials
- industry trends
Statistical sources for business information often cite
lack of money
and lack of management expertise as the primary reasons for
business
failure within the first five years. If an entrepreneur
makes errors in assessing the variables above, the results
can be more costly than the business can survive. If growth
is too rapid and uncontrolled, cash flow, assets, quality
control, and management systems can suffer irreparable
damage. Your firms growth should be planned as carefully as
its start-up. The most basic tool for growth is a strategic
plan. An extremely important adviser to your growth plan is
your accountant who can help you evaluate the financial
risks of your strategies. The accountant can anticipate the
cash requirements of your growth plan and recommend the
timing and sources of financial assistance if required.
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