As a business owner, you are always looking for ways to grow your business. And as you begin to increase your sales and sense of new opportunities, you are now planning to expand. However, you need to keep in mind that unplanned expansion can be as dangerous to your business as no growth at all.
A business that expands fast can bring harm to you. It can destabilise your business giving its owners a false sense of security while the additional sales volumes can eat up more working capital than expected. If you are aiming for business expansion, there are certain things you need to remember.
Uncontrolled spending is the biggest danger in running business expansion program. This can cause loss of profit especially when you are too busy and you fail to keep track of what is happening. Overhead expenses that were under control in the stable business situation can grow rapidly to cover the extra expenses associated with a bigger scale of operations such as electricity and water bills, transportation, etc.
When you grow your business, you will of course need to employ new home employees. However, you need to control sudden influx of new employees especially with less skilled, unproductive ones. Hence, be careful with your recruitment process.
As a business, making sure that your customers pay their bills on time can be a big challenge and a huge drain of resources especially if you only have a handful of staff or are a sole operator. Unfortunately, many small businesses are forced to close their doors within a year of starting up, and non-payment of customer accounts plays a large part in forcing a business to close.
Regardless of a business’ size and nature, non-payment is a serious problem. Late or non-payment of debts can cause serious cash-flow problems, resulting in your business facing many problems of its own. From unhappy staff to not being able to maintain supply-and-demand for other customers you may have, this can be a big trouble. However, if you’re experiencing problems with getting paid then there are several steps you can take to ensure your debt recovery doesn’t impact too heavily on your business.
Discussing your clients about their unpaid bills to you can be a bit difficult. However, contacting the customer is very important as there could be a genuine reason why the customer hasn’t settled their bill, and you should always try to attempt to discuss the situation and reach an agreement. It is necessary to consider legal proceedings against a customer in order to collect an outstanding debt.
When someone complains about his or her experience with your business, you should know how to look at those complaints and how to handle them. If they are not satisfied with your product or service, do you encourage your customers to complain? Do you have any type of procedure to handle complaints? Do you have any idea of the value of complaints?
When a customer tells you something is wrong it’s important to sit up and take notice. A customer complaint may be the first indication of an underlying problem. Moreover, it may have been experienced by others who, rather than complain, simply took their custom elsewhere.
How you respond to complaints is an indication of how much a company truly values its customers. If you handle the complaint experience properly, it is a positive one for the customer then a company’s reputation can be enhanced. Nevertheless if the customer is dissatisfied this will result in a loss of business and a damaged reputation.
Consider are opportunities to improve your product or service. That is why the complaint handling process should be an integral part of your business operation. It not only protects customer relations and avoids crisis management, the information collected is important data and can be used to identify and help tackle problems.
Rarely is there the person who does not encounter an ethical or moral dilemma at some point in his or her business life. Everyone is likely to have to face such an instance eventually whether that individual is the owner of a multinational corporation, a small business entrepreneur, or a new or established employee.
Many individuals are faced with making a decision based on how it will affect not only himself, but on how it will affect the company as a whole, just like personal ethical dilemma. Therefore, it is very important to understand and apply the ethical conduct for businesses.
What is business ethics? It is the application of ethical values to business behaviour. From boardroom strategies and how companies treat their suppliers to sales techniques and accounting practices, it applies to any and all aspects of business conduct.
Business ethics applies to the conduct of individuals and to the conduct of the organisation as a whole. Ethics goes beyond the legal requirements for a company and is, therefore, discretionary. It is about how a company does its business, how it behaves intrinsically.