SMALL BUSINESS
MANAGEMENT
Chapter 14
Managing Growth
Joe Six Pac
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