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| Expansion Planning | |||||||
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Background Businesses
go through distinct phases as they grow and develop. One
of our most frequently-occurring activities is
working with companies who have started up
successfully, moved through an early period of
volatility and uncertainty, are now trading
successfully, and who would like to undertake a
fairly aggressive expansion plan. It
is essential that companies in this situation
recognise that they are moving out of one part of
their life-cycle, and into the next: they are
changing from being an entrepreneurial and highly
adaptive firm, to one in which more robust processes
and procedures must become established. This
process is sometime referred to, somewhat
disparagingly, as a step towards “business
maturity.” We
see this differently: it involves successful
businesses realising that now is the time to create
a solid platform for growth. The
alternative is to continue to extend the business in
multiple directions, with a rapid ‘test and
adapt’ philosophy, but where the stakes of running
a complex business are steadily increasing.
Expanding the business without changing your
processes will erode your profitability and cause
you a very significant risk of business failure. Planning
for successful expansion of the business entails
careful assessment of a number of different areas,
covered in the following sections. |
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Mungo
Dunnett Associates Home Page |
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