Building Business Momentum
By June Campbell
What development stage is your business in?
Experts identify three main stages of business growth. The Startup Phase is the time when you get your business up and running, locate customers, make sales and essentially, have money coming in. At this point, typically you are an Owner/Operator.
The next stage is Early Stage Expansion. In this phase, your business experiences "growing pains" similar to the ones I will discuss below.
In the third stage, your business moves from Owner Operated into Management. In other words, your function is that of manager. You are no longer involved in the day to day operation of running the business or of producing the product or service.
Only a minority of small businesses move into the third phase. Therefore, today's article will address ways of managing growth as you move into Stage Two.
You know its time to look for ways to manage growth if any of the following apply:
1. You have steady income and regular sales but you are working too hard. You are investing "sweat equity". You know that if you continue working at that speed, you will burn out, lose productivity or worse -- become ill. It is time to find a way to increase growth while working less.
2. You are running into cash flow problems. Cash flow problems are typically caused by the need to invest in inventory or in product development, or to cover payroll. However, while money is being spend on the above items, the payment for sales is delayed until the product is developed, delivered and invoiced. That is, you have capital assets (equipment, inventory), but cash is flowing out faster than it is flowing in. In this situation, you will need to find a way to manage by generating an influx of cash while continuing to develop your products or services.
If it's time to grow your business, you'll want to manage that growth as efficiently as possible. Try one or more of the following:
How to Write Business Plans, Business Proposals, JV Contracts, More!
No-cost ebook "Beginners Guide to Ecommerce".
Business Writing by Nightcats Multimedia Productions