Tuesday, January 02, 2007

Pace your business growth


Pace your business growth

As time goes by, your business will grow, problems will grow. Small decisions will become big ones. A decision that may cost you a few thousand pesos will escalate into hundreds of thousands or even millions of pesos. Past strategies may no longer be applicable. How will you prepare for growth?

Most Philippine business I think must learn to pace their growth. When you enjoy initial success, sometimes it more prudent not to over expand you newly established business empire. The industry that has often been the culprit of over expanding is the food and restaurant business. A good example of this is the story of a certain restaurant who initially opened near speaker perez street in Quezon city. They enjoyed initial success, over expanded and in the end they closed shop and is now being hunted down by their creditors and suppliers who filed cases of estafa against the owner.

Businessmen admire rapid growth in their business. Almost all will seek and strive for it. But growing too fast is very hazardous if you don't know what you are doing. Pace yourself according to your capabilities and capacity to buy new equipment, hire more employees, to expand you branches. It is ok to borrow money from banks or financial institutions to finance your business growth, but do not over extend yourself. Be conservative in your estimate on your capacity to pay back your loan.

Picture: www.co.delaware.ny.us

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