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Looking for practical insights from a business advisor who works with small businesses and understands the importance of growing at the right rate.
How do you assess the optimum rate of business growth? And what should small business owners do if they're NOT growing at the right rate? Looking for actionable tips, using real-world examples.
Transforming Ordinary firms into Extraordinary firms by Turning Roadblocks into Roadmaps
How do you assess the optimum rate of business growth?
Assuming you have planned your growth based on where you want to take the firm & how you'll get there, a simple financial projection with a Growth Model is a good starting point. Begin with an "Internal" growth rate model (IGR); move to a "Sustainable" version (SGR) then roll the results into and EFN (External Funding Needed) model to calculate how fast the firm can grow with various decisions as well as how much funding is needed for each. Then decide how much financing you are comfortable with, the cost of each as well as the relative risks invloved. Easy Peasy.
And what should small business owners do if they're NOT growing at the right rate? Start with an assessment of the challenges you face. Perhaps use a SWOOTT (sic), PESTLE or Porter model to objectively document your world. Design action steps with metrics to assure progress will be made.
