Planning a head
A business plan that worked for you 10 years ago might not be effective today. The market conditions keep changing after some time, so you need to set aside some time to come back to review and update your business plan.
As your business expands, your strategy has to change to fulfil the new conditions in the market. For instance, your goal might change from winning new customers to building a sustainable and profitable relationship which will maximize on the growth with the existing shoppers. Existing business relationships usually have a greater driving force for profit and might lead to a reliable cash flow. Fresh relationships might also boost the turnover, however, the profit margins might remain low, which as you
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There are clear risks that come when you only depend on the existing customers. Therefore, expanding your customer base helps reduce these risks.
By emulating the same business model that is much bigger, is not a sure route to growth. There are many other strategic choices such as outsourcing that could bring better opportunities for growth. It is also important not to assume that your present success gives you an edge when new opportunities emerge. No! Never like that. Each major action requires enough planning just like the way you plan before you launch a new business.
Assess the new opportunities that come on the way , ask yourself whether the new strategies fit your strengths and the overall vision of where your business is headed. Keep in mind that each new development comes with its own changing risks. It is therefore worth to spend time to review the potential risks that you face and come up with a contingency plan.
Cash Flow and Financial Management
Smooth cash flow management is crucial to any business. For a business that has just started and it is even more important. Cash constraints can turn to be the biggest monster to limit