Problems During Business Expansion

Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 13 Expanding and Handling Problems

Question:
"What are your recommendations for people when they encounter serious business problems?"

Phil Holland
Founder, My Own Business

Topics covered in this video:
Business expansion, growth, problems, cash flow, liquidity, opportunities

Transcript:
Someday, as your business grows, you're going to encounter some really serious problems which will require keeping certain things clearly in mind. The first thing to tackle is to reappraise your cash flow for the next period of months to be absolutely certain that you maintain a cash balance in your bank account. In order to accomplish this you may have to drastically cut some costs. I am not suggesting you cut quality. Instead, your product quality should be improved rather than cut. Obviously you will want to make an overall appraisal of your business to detect if your business has any major flaws that need to be cured in order to succeed.

During business downturns you may wish to jump ship; to look for opportunities far removed from your own business. Usually it's better to stick with what you know best and tough it out through the difficult periods. In fact, adversity may produce opportunities within your field, where you can gain an advantage from an adverse situation. For example, if you operate apartment buildings and find yourself in a period of a real estate slump when apartment buildings are going into foreclosure, it might be a good idea to look for opportunities to buy foreclosed apartments. So be prepared for periods of adversity and when they happen, maintain your liquidity, reduce your cost, maintain your quality and look for opportunities.

Category:

Education

Tags:

• Start
• starting
• business
• expanding
• expansion
• grows
• growth
• pilot
• problems
• motivate
• employees
• managers
• incentives
• profit
• centers
• planning
• finance
• liquidity
• cash
• flow

[GamersHavenGC]

me too.  it was very helpful!

[nblfyb]

i really appreciate this advice. thanks a lot.

Sean