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Business Resources - Expanding a Business

Getting Ready

 

With the decision to grow, your company enters a new phase that is no longer business-as-usual. Many changes will occur in all functional areas in order to keep pace with the sales growth that is coming. In order to prepare for these changes, you must remove the barriers to growth in these key areas.

What can you do to help you "break through" the barrier more smoothly, in a more controlled fashion? It's all about preparation in the key areas of business that must keep up as you grow sales.

Management: Conflicting Vision

To keep its eye on the target during these times of change, management must have only one target. Discuss the vision with key managers. State the vision - together. Only managers who believe in the vision should participate in the inner circle.

A single vision is crucial - you cannot drive with double, triple or quadruple vision.

  • Limit the key management group to those who buy into the vision.
  • Key managers must be capable of contributing to the accomplishment of the vision.
  • Work together on the vision statement (see Section 2, Chapter 1: Planning for Growth) - agreement on the purpose of being in business is essential and revealing.

Operations: No Plan

Staff can work toward expectations only if there is a written plan that states what the operational goals are. Include equipment purchases and additional staffing in goals and plans. Make sure everyone knows the plan.

Without a written plan, existing staff have no way of knowing what's expected and you cannot know whether your expectations are being met.

  • Know what staff and equipment can actually produce at full capacity each day.
  • Prepare a plan with goals, objectives and a time frame. If you will expand production and service capacity, include equipment and personnel targets in your plan.

Finance: Strangulation

Cash is the air supply for growing companies. More production and sales means more cash is needed for inputs, inventory and equipment. Make sure financing is in place, watch cash flow like a hawk and hire or outsource the best financial help you can get.

The most devastating barrier to growth is cash shortage. Cash is like air for the growing business.

  • Project your cash needs, control costs, monitor cash flow and preserve some credit capacity for emergencies.
  • Manage money smartly: hire or outsource expertise in collections, receivables management, cash management and foreign currency management, as necessary. You will also have more bookkeeping and accounting obligations.
  • Build good relations with sources of funding. Let them know your plans and how you're doing.
  • Cash is king. Profitable businesses can go bankrupt if they cannot meet bill payments.
To help manage your day-to-day financial affairs, consider RBC Royal Bank's wide-range of financing options.

Human Resources: Inability to Deliver

More pressure means more turnover, just as you need more people. Recruitment, scheduling, training and benefits handling all become critical.

Growth brings pressure. Some people thrive and some crumble or just shun it. Turnover happens and there is never a good time. You always need good people.

  • Hire for experience and attitude in key roles. In all other roles, hire for attitude.
  • Refine your recruitment methods - and remember that decent benefits attract and retain good employees and save you plenty of recruiting work.
  • Orientation and training is crucial to good performance - and to employee retention. Develop training processes and routines. Follow them.
Whether you have one employee or more than a thousand, let the experts at ADP help you with payroll, human resource management and other employer services.
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11/28/2013 15:46:10