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Small Business Growth Cycle
The key to small business growth will begin with a strong foundation. The foundation includes a marketing business plan. As we often hear, plan to fail to fail. And, the success of small business is about following the plan.
The second part of the foundation is having enough capital. What is enough capital? Enough capital is to have enough set aside to take care of you and business at least for six months.
As a marketing business coach I have seen from six months to one year. The key is in a position to defend yourself. Also, you want to have enough capital not to only sustain your business but to grow it.
There are two components of the small business growth cycle. You must have enough marketing and capital business plans. If not, chances are you to get where you want to go very reduced.
Small business growth – Do you have a capital
What is capital? You hear it all the time. Simply put, it is the funds you are willing or able to invest in your business growth and business without knowing when you can look back.
This is where I have seen most business owners come short. Somehow they assume that it is miraculously there will be enough profit in what they do to support business growth.
Starting your own business is a great challenge. But, running a business in a way where it can grow is a bigger challenge.
At first most of the business spent more money to start and the first few months besides being anticipated. This makes them lack capital to invest in business. As a personal business coach, I can assure you that it is a very good idea to have a budget.
This way you know beforehand what is expected and hopefully have an emergency plan if everything is, as usual, don’t exercise as intended. If you don’t have extra capital or know where to get it then you really have no plans for the growth of your business.
Small Business Growth – Depends on Capital
As a personal business coach, I have observed that the number one small business killer and the dream they represent is a lack of capital. Very often businesses will begin and grow.
However, there is no funds to help build the process and structure to support growth after unexpected costs and unexpected needs there are not many left for business growth.
This is a problem for several reasons.
If you cannot fund growth, your service level or product quality that allows you to grow reduced.
When the level of service or quality of your product is reduced, there is a decrease in customer trust.
With the decline in customer trust there began to become a decline in business.
If the decline is not intended since the beginning, the business gets a bad reputation and then business growth runs from the hill to rise to the unpredictable mountain.
Small Business Growth – Having a Capital Plan
For all entrepreneurial business owners and professional solo, it is important to have a capital plan. Some capital sources can become banks, business administration or private investors. I am careful of private investors. In the bank you might be able to set credit pathways. Business administration has several good loan programs.
If you have a problem, there is a factoring. There is also a source of business capital outside the banking. There are business capital companies that can help you manage business credit lines or use your assets as collateral for growth capital. They can also help you manage rent and this can increase your balance sheet.
The key is to have a plan before starting your own business know your choice when it comes to capital. When you know your option, you are far more likely to achieve the success and growth of the business you want.
