The Small Business Forum
Expansion or Rapid Growth...contd
- With the expansion, the business is decentralised. The owner brings in more staff to manage the semi-independent units and become a manager of managers.
- Systems are strengthened to enable management of the units. Cash flow management includes increasing cash to support the expansion and improved cash control in the different branches. Quality assurance includes brand maintenance and quality control for customer satisfaction.
- Costs include the long-term and short-term costs of setting up and operating the increased activities of the branch network. Possible sources of finance include internally generated funds, equity and borrowing. An operating business may generate funds that can be put back to finance expansion. Based on past and projected future performance, the business may also attract investors or loan funds.
Comments, Questions and Suggestions welcome.
drkibuka@thesmallbusinessforum.co.ke
+254-729524219
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