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Expanding a business present a new set of problems and challenges. In my opinion, this stage is one of the most critical in the life of a small business. In some cases, this is the beginning of the end. At this stage in the life of a small business, the owner faces new organizational challenges; most often there is a lack of operational systems and the lack of an infrastructure conducive to growth.

In many small businesses, in addition to a lack of a focus action plan, there is a lack of basic accounting principles. Proper expansion cannot happen without the development of a detail budget. There has to be enough resources to fund the expansion to it final desired destination. Counting on funding an expansion, i.e. paying additional salaries, paying for more space, paying for more product, etc, etc out of “immediate future income” is a sure way to fail.

Expansion also requires some “loss of control” by the founder of the business. Growth mandates change and responsibilities will have to be delegated to others. This requires the selection of new staff that has experience in organization, planning, motivation, and leadership. It is possible that expansion may be beyond the capabilities of the founder and trust has to be present as he recruits a new leadership team.

A business is like a tree, ” if it doesn’t grow it will die” I understand the need for growth and also understand the need to be prepared for growth. The four steps are:

  1. know where you want to go – have a destination in mind and have a focus plan to take you there
  2. know the cost to reach that final destination and obtain the necessary funds
  3. have your current employees understand where you are going and how you plan to get there
  4. implement the plan.


“If you want a place in the sun, you must leave the shade of the family tree”

Have a great day!

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