As the owner and manager of this small business, would a slow pace of growth or a rapid pace of growth be better? Why?
As an owner and the manager of this small business, I would opt for the slow pace of growth. This is because rapid growth helps in the spontaneous increase of the earnings and revenue, but it is not good for the stakeholders as well as for the business itself, the difficulties and the problems associated with the rapid pace of growth becomes difficult to manage, so a sustainable and a realistic level of revenue can be attained with the slow pace of growth. The problems associated with the rapid growth exert their influence on the operational capacity of the business, and affect the business operations. Such as in this case, rapid growth has enabled to earn increased revenue, but the business fails to improve its operations and service that paved the way for the failure of the business.
The fast growth of business apparently attracts everyone, but the rapidly growing startups burn the money for many years before the generation of the positive cash flow. The greater the spending rate of money, the greater is the odds of business that are forces for seeking more capital. However, in case the additional capital is not available, then it will further create big troubles for the businesses. The hotshot businesses, i.e., the businesses undergoing rapid growth are not able to maintain their growth rates and at the last they face failures. So, being a manager and owner, I will prefer slow growth that helps to earn low revenue as compared to the revenue earned by rapid growth, but it will not pose the threat of failure to the business.
What steps could you take to make sure that the quality of your products, and the customer service your employees offer, do not decline if you choose expansion of the business?
If I choose to expand the business, then I will make it sure that the quality of the product, and the customer services that employers are offering, do not decline. This objective can be achieved by clearing defining the target market, analyzing major competitors, making a clear cut strategy for the business and plan for success, tracking the moves of competitors, taking advantage of the weaknesses of competitors, learning from own and competitors’ mistakes, identifying the customers, maintaining a loyal customer base, focusing on the needs and wants of customers, and making it sure that the business is sensitive to the needs, requests, and requirements of the customers. The price will be set after comparing the price that the competitors are offering. The objective can also be achieved by hiring trained and enthusiastic employees that are motivated to work. Furthermore, for ensuring success it can be forecasted thet sufficient resources and capabilities be available in order to compete the market in five to ten years from present day, vision of the business for five to ten years from now can be set for ensuring that the business is delivering the products according to the needs of the customers, and is modifying their operations according to the changing demands of people in order to make it sure that the quality of the product, and the service offered to the customers do not decline. Furthermore, the marketing and the advertising strategies of competitors can be analyzed, and better campaigns can be made for attracting more customers. I can also make it sure that the business possesses the required uniqueness and innovation that separates it from the competitors, and more and more people prefer to buy our products instead of going to the competitors.