Growth Small Business Change Management - USA
Structural Organization Problems - More Centralization or More Decentralization? |
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Structural Organization Problems - More Centralization or More Decentralization? Is your industry changing? Are your business locations becoming less productive, less competitive? What do you think is causing this? Do you have hard empirical evidence that this is happening? Are your stores becoming more expensive to run? Are your stores or locations becoming less profitable? What can you do? There may be several reasons this may be occurring to your business and/or industry. More importantly what can you do to change it? Maybe, nothing. Maybe it will cost a lot of money, more than you currently have. Maybe more money than you are willing to invest in your business for fear of not getting a return in the not too distant future. These are the questions that larger corporations deal with all the time, but what about when it comes to small business? How can small business change without a lot of cost and while being more effective? There are 5 general things you can do as a small business owner to fight industry change. 1. Quit, sell the business before you lose more money. This may be not one of the best ideas depending on how much money you have invested in the business. More importantly you must consider how much of the business you actually own in terms of large assets, if you were to sell what could you sell, assets, patents, or goodwill. Secondly, what do you owe?, if you sell can you pay off all the bills?, will you have to declare bankruptcy?, can you get other loans? Can you find a buyer? These are things you must consider. 2. Move the business to another location. Perhaps the problem is with the location and not the business. Maybe your area has become too expensive for this type of business. Maybe the area does not desire this kind of business anymore and the consumers have changed. Maybe there is another location that is better to have your business. Maybe a larger competitor has moved in and taken a lot of your business. 3. Change suppliers, distributors and distribution systems. Look at the people that supply you with your goods, are they priced fairly, could you buy more quantities and save more money. Could you defer some costs of you business? How about your services, get some other quotes, costs are important too but be weary they do not hinder the quality or responsiveness of service you are currently getting. 4. Change customers. Maybe its time to change customers. What? Maybe the customers you have do not pay enough. Perhaps you can change your marketing image to attract more affluent customers. 5. Do nothing. Unfortunately, this is what a lot of small businesses do and 95% of new businesses fail in the first 5 years. Above all consult with a professional, get some hard facts and numbers on your business and your industry, ask the right questions or find someone that can help you do so, before it is too late. http://www.usabusinessgrowth.com
Article Source: http://EzineArticles.com/?expert=Daryl_Des_Marais
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