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Business Resources - Growing Your Business

Assessing Your Goals

 

Challenges of Growth

Higher business risk

Growth means change, and change can be disruptive. These disruptions can take many forms from customers feeling under-serviced to employees being unsure of new business processes. And a growing business can quickly over-extend itself financially trying to manage this change. Awareness and careful planning can help keep these risks to a minimum.

Lower short-term profitability

Growth often requires a substantial investment of capital up-front for such things as additional employees, a move to a bigger space or advertising. While the rewards can be substantial, you may not see an increase in cash flow or business value for several months or even years.

Financial risk

Expanding a business involves risks, and these risks extend to your personal finances. As your business demands more funds, you may be required to temporarily decrease your draw/salary, or you may need to personally guarantee a business loan. Make sure everyone is prepared for the financial challenges that lie ahead.

Time pressures

Your leisure time may already be in short supply. A growing business is likely to take even more of it. Be prepared for the increased time commitment you may face as business demands escalate.

Increased competition

As you increase your market share, you may find competitors fighting back with growth strategies of their own. This could result in an ongoing battle to differentiate yourself from them to maintain your competitive advantage.

Talk to a Small Business Advisor

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08/10/2011 15:34:12