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Business Resources - Expanding a Business

Risks and Rewards

 

Things to Consider

Will greater size give greater efficiency?

When economies of scale bring greater profitability, growth pays for itself. If size and economies can also limit the number of viable competitors, growth is even more attractive.

Will customers and resources remain loyal?

Make sure customers will stick with you through the transition period, either out of loyalty or inconvenience of switching.

Will you have to finance growth yourself?

If you can't borrow on reasonable terms or attract new investors, internal financing will determine the pace of growth.

Can you take the heat?

Your tolerance for stress and discomfort - financial, personal and physical - is a limit on growth.

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12/23/2011 13:46:27