Home' Border Enterprise : June 2015 Contents 2015 ENTERPRISE DIRECT 5
AT some point in time successful businesses will come to the fork in
the road where the decision has to be made whether to expand or
Once a small business is humming along, growth is usually the next
It can also make good business sense - better brand recognition,
building value in the business for employees and customers, offering
a wider range of products and services to a larger geographical
market and creating economies of scale.
However, business owners and managers need to carefully assess the
risks and rewards before committing to an expansion program.
It is essential that you research and plan the growth of your
business. If your business grows too quickly or expands too much
you could experience financial, legal, staffing, resource and supplier
problems. For business growth to be successful, it should be
Many businesses fail to grow as a result of poor financial
management. Produce and analyse your balance sheet, profit and
loss and cash flow statements regularly. Always try to make a profit.
For example, if business expenses are increasing, consider raising
Assessing your production and/or service levels is also a valuable
tool to assess how efficiently your business is operating, the level
of value you are delivering to your customers and the costs of any
production and/or service issues.
Other factors to be taken into account include assessing your
human resources and their performances and evaluating your
If you are considering growing your business because you are
responding to strong competition, smaller margins or falling sales -
be wary. These problems can sometimes make your situation worse,
with more money
and risk involved.
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