New businesses will often face challenges in expanding. Matt Redhawk
advises new entrepreneurs not to feel good being in one position for too
long even if it is profitable. A business that does not expand will
soon lose to its competitors. However, there will be challenges to be
faced in the expansion.
Cash flow
A new business will likely face cash flow problems before the product starts generating meaningful revenue. Cash constraints can lead to problems in expanding stock and acquiring more human resources. This can be overcome by having a business plan that clearly identifies financial resources and how these resources would respond to a need for expansion.
Market information
You cannot expand if you don’t know your present position. However, getting the correct market data is a challenge for many businesses. This can be easily overcome through deploying low cost IT tools like social media analytics to gauge market sentiment.
Human resources
An expanding business needs human resources which cost money. Attracting and retaining top talent can have a big impact on your business expansion. New businesses can overcome challenges in human resources expansion by hiring a dynamic human resources manager who can implement a strategic human resources plan.
Business processes
An expanding business will need to change things like stock control, or customer service is done. Many businesses stick with models that worked before but which are inadequate for an expansion. Matt Redhawk says this can be overcome by engaging a business change specialist to draw up a strategic plan.
Cash flow
A new business will likely face cash flow problems before the product starts generating meaningful revenue. Cash constraints can lead to problems in expanding stock and acquiring more human resources. This can be overcome by having a business plan that clearly identifies financial resources and how these resources would respond to a need for expansion.
Market information
You cannot expand if you don’t know your present position. However, getting the correct market data is a challenge for many businesses. This can be easily overcome through deploying low cost IT tools like social media analytics to gauge market sentiment.
Human resources
An expanding business needs human resources which cost money. Attracting and retaining top talent can have a big impact on your business expansion. New businesses can overcome challenges in human resources expansion by hiring a dynamic human resources manager who can implement a strategic human resources plan.
Business processes
An expanding business will need to change things like stock control, or customer service is done. Many businesses stick with models that worked before but which are inadequate for an expansion. Matt Redhawk says this can be overcome by engaging a business change specialist to draw up a strategic plan.
