Another Entrepreneurship Project of the  Whitman School of Management at Syracuse University

Growing your business is great. Doing it wisely is better.

Growing a business is arduous. Indeed, it does not even matter what stage a venture is in; unforeseen things will always arise, and business growth always seem to be compromised by something: competition, capital, etc. However, according to Martin Zwilling (Forbes Contributor), in spite of all these unwanted distractions, small business owners should, while still trying to expand their operations, remember a multitude of  things that tend to fall on the back burner.

1-    Incorporate!

Sure, it sounds boring, costly, and you are busy saving the world; however, Zwilling underlines that the cost of incorporating as an LLC is affordable, and that is quite easy to later change to a C-Corp.

2-    Keep it in Writing!

Verbal promises may only lead to issues. All founders may be best friends today, but things change; incorporating and issuing shares, or keeping legal records of agreements may save you from never ending court battles.

3-    If they are not working out, fire them!

You are expanding at the speed of light, and are desperate for help; do not make the mistake of hiring anybody, just to have “extra help”. Hiring nonqualified people may only lead you to waste money, because you will be paying them to sit around. If you realize that certain people in your team are just not working out, get rid of the dead weight: let them go.

4-    Do not hire clones of yourself!

Sure, it is comforting to have co-workers who think just like you, but you may need to challenge yourself with intelligent people who think differently. Also, please remember your co-workers are your business partners, not your friends.

5-    Plan your cash needs accurately!

Double check the amount of cash you will need before funding; money gets used up really fast, and with people depending on their paycheck, your company CANNOT run out of cash. Zwilling even states that cash is more important than profit.

For more tips on how to grow a company wisely, please read the whole article at: http://www.forbes.com/sites/martinzwilling/2011/09/28/10-mistakes-growing-companies-routinely-make/

0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*