All successful businesses grow.
What started out as a two man operation can become an operation that ends up employing hundreds of people. Companies expand at varying rates, some have explosive growth early on and others expand at a very slow and steady rate. The question is “Who needs to oversee your business expansion strategy?”
Expanding your business
Expanding your business is risky. If not done correctly and with professional foresight, your business expansion strategy can become your business destruction strategy. In the early days of running your own business, you learn to be a jack of all trades and you do as much as possible yourself. For a company just starting out it’s the most cost effective, comfortable and sensible way to do things to keep costs low. But as your company grows, you’ll find yourself stretched thinner and thinner. As the company gets more established and profitable itbecomes impossible to oversee operations, sales and marketing, accounting, customer services and the other myriad of management functions necessary to build a successful business.
Engage with an expert
The problem with most entrepreneurial ventures, is not seeking the right advice and guidance when considering a business expansion strategy. Entrepreneurs are so used to doing everything themselves that they embark on expansion strategies that are not well thought out and executed. It’s like bringing a knife to a gun fight. When you reach the point where you think expansion is viable, it’s time to think about bringing other high level managers and professionals on board to help you out. You need to build a senior team that’s able to manage all the critical areas of your business to take it to the next level.
For many businesses, bringing in high level experienced managers for their planned expansion is not financially viable. Often the business cannot afford to engage with these high level managers due to budget constraints. It is a catch 22, because in order to expand successfully and avoid the pit falls or incorrect expansion strategies, you need guidance from managers that have had experience with other company’s expansion exercises.
The other handicap that faces entrepreneurs when they decide to expand their operations is that they don’t know where to go to find the best managers that can guide them. They will often look within their circle of friends and associates to help. There is a solution to both these challenges. There are companies that offer outsourced solutions that can be engaged on a part time or interim basis so as to fit in with even the tightest budget.
Consult with an experienced financial director or financial manager
If a company is in need of an experienced financial manager or financial director, companies such as The Finance Team, outsource experienced financial experts that work on a part time or interim basis that can guide you through the pit falls of an expansion strategy by drawing on their many years of experience that they have gained across a multitude of industries.
Good financial managers or financial directors create budgets and related financing strategies. They can help you make the best financial decisions for your company. They develop control systems that monitor your company’s financial health. You will know when you need the services of an experienced financial manager – you lie awake at night worrying about your company’s finances when you should befocussing on sales / customers and those critical area’s that generate profit and return on investment . As mentioned earlier you may not need a full time financial resource, you may only need the services of an FM or FD three days a week or even less. If you don’t know the difference between cash flow and profit and you are thinking about expanding your business, run to the nearest phone and find yourself an FD or FM that can help you – NOW!
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