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Controlled, focused and successful business growth is a challenge. Think about making training, counseling and strategic planning key points of your business's growth policy.
Most small business owners want their venture to grow. The secret is managed growth, keeping in mind concepts such as economies of scale, internal or external financing, market timing and customer focus. Many entrepreneurs have seen their businesses fail as a result of uncontrolled growth.
Home-based businesses are inherently limited in their growth potential. These ventures such as specialty trade contractors, housecleaning services and bookkeepers usually sell to a limited market. Expanding businesses almost always require larger markets and a steadily increasing customer base. Sometimes expansion doesn’t mean more profitability. By adding a second shift or physical location, your additional overhead could be more than enough to limit your revenues to less than it was before the expansion. One way to examine the effects of changes in your overhead is to assemble a financial proforma. The proforma or projection could demonstrate a positive impact on revenues but limit the net or “bottom line”.
If your business can find ever-increasing customers, deliver a product or service with unique characteristics and satisfy increased demand, consider the following fundamentals and associated resource links in your own small business growth formula. |
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