MANAGING THE SIZE OF YOUR BUSINESS
Big does not have anything to do with the measure of success of a business. Each individual business has to find its own “right size”. A business that is sustainable and profitable is the “right size”; it’s not based on the number of employees, its location or the size of the office.
Many business owners have the mindset that “big” translates into success. It may just be an ego that needs to tell others about their success in terms of “big”.
I am not against growth but, I am against growth for growths sake. Slow, necessary growth is understandable, but to gear up in anticipation of future profits is a mistake. Growth usually requires the development of a new management system, hiring more people, buying more equipment, relinquishing more control as well as taking on additional stress.
In developing a plan for a business it is important that a realistic benchmark be set for the financial portion of the plan. Income and expense projections are based on the funds needed to provide the services/products which include the cost of employees needed to deliver those products. The business, depending upon its type, may be successfully operated by one person or five or perhaps more. Profit is then added to the income side of the budget and the benchmark is defined.
The ultimate goal for the business plan is to lay out the steps necessary to achieve a “comfortable” business; one that is sustainable, profitable and as stress-free as possible.
The measure of value that a business has is measured by the benefits it provides to its clients/customers and the benefits it provides to its owner and employees.
Don’t look back. You’re not going that way!
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