A major strategic issue for creative enterprises is the
question of business growth.
Some enterprises increase sales and profits by employing
more and more people over time. On the other hand, many creative entrepreneurs
choose not to grow their business in this way, preferring to remain a sole
trader or small team with a 'lifestyle business'.
Growth does not necessarily provide greater profits –
increased sales can be matched by increased costs, leaving the net result
unchanged.
Before growing your business, it’s crucial to get the
business model right. Obviously, a loss-making formula, when expanded, will
make even greater losses!
The challenges for growth include achieving ‘scalability’,
in other words, how do you create and sell more goods or services profitably,
without increasing the resources applied and the costs incurred by the same
degree?
No comments:
Post a Comment