Managing The Development Of Small Business Ventures
Setting up and managing a small business venture is not as easy task. Even though many people will tell you to relax and take things lightly, you must be careful at every step. The development of a small business venture can be classified into five broad stages, with each one of them having its own set of requirements for proper management. Lets have a look at all of them briefly.
The first of these stages is the existence phase. Here, your main focus should be on coming up with a product or service that will survive in the market. This will govern much of the development of your small business venture, as you are required to acquire as many clients as you can initially to cover losses or break even. Once you do that, you can move towards making profits.
This stage allows you a lot of freedom for experimentation. So use this time wisely.
Next comes the survival phase. Now your business has been established, and you need to take appropriate measures to help it stand against the test of time and severe competition. While acquiring more and more customers is important for you, there are other things that need your attention too, such as improving your product or service as per the changing market requirements, pricing, etc.
In order to survive this stage, all you have to do is make sure that you total revenue exceeds costs, and you are good to go.
This stage is exciting, as it takes you from merely existing and surviving to a point where your business is thriving. If that happens, then you incur sustainable profits, and your business grows by many folds. In order to achieve this state, you must invest in suitable growth plans. You can either do this yourself, or appoint managers who could do everything and report back to you on a regular basis.
At this point, given that you have successfully passed through the first three stages, your business is ready to grow into something big. However, this transition might not be smooth, and you would have maneuver through some challenges, such as managing operations at a large scale, making the right choices in terms of future investments, etc.
At this point, you must be able to manage the rapid growth that your business is experiencing, and generate enough funds to sustain it in the long term.
Your business cannot always experience rapid growth, and there will come a time where it slows down despite evolving into a larger entity. Your major concerns at this point should be to maintain the level of energy of your employees, and invest in newer projects that can allow you more growth. For instance, you might venture into producing something new related to your field.
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