SMALL BUSINESS MANAGEMENT Chapter 14 Managing Growth Joe Six Pac

 What recommendations would you make for the two companies in regards to future growth?

The Business Cycle  Introduction  Growth  Maturity  Decline Super Bacteria

Problems Created by Growth  Owner-Manager Fatigue and Stress  Lack of Communication  Lack of Coordination  Shortage of Cash  Low Profitability

Problems Created by Growth (cont.)  Breakdowns in Production Efficiency  Lack of Information  Decreasing Employee Morale  Owner Lifestyle Golf Gifts

Evaluating the Growth Question  Is the business one that can grow ?  Is the business owner prepared to make the effort ?  Does the owner-manager have the capabilities to grow?  How should the owner-manager pursue growth ?

Evaluating the Growth Question (cont.)  Growth options new markets for the product or service increased sales by increasing frequency of use. add new products or services or modify existing ones. new uses for present products or services acquire other small companies Sports Cars

Planning for Growth  The Expansion Plan set objectives determine alternatives select the best alternative

Planning for Growth (cont)  Understanding the Requirements of Growth Greater Management Depth Intelligent Expansion Additional capital Financial Information Organizational Change Implementing Managerial Controls Monitoring the External Environment