All entrepreneurs have a goal, to grow their business. Therefore, they must make accurate decisions that allow them to pass from the stage of survival to that of success and finally place them in a stage of maturity of the business.
These decisions are not going to be presented together at a precise moment in the road, but throughout the life of the business and there are particularly four that will determine the reins and the path that your SME will take.
Decision making is one of the most complex and even difficult tasks because of the consequences they have in the future. Some considerations that must be taken when a decision is made are:
Think about the decision you are going to make
Determine the options you have
Elaborate a detailed analysis, considering the pros and cons of each, as well as the direction the company can take with each decision
Analyze the information you have and make the decision
Learning to make a decision is important for the entrepreneur because otherwise you will be leaving untapped opportunities
That said, we present the three decisions that every entrepreneur should take along his way to achieve growth and maturity:
Choose the work team
It is essential to think about the talent that will surround you in this adventure, because it must necessarily be people who share your ideals and who have clear objectives of the business. It is necessary that once you have decided to hire staff all share and know what is the goal and the plan that will take them to achieve it. In addition to maintaining effective communication, it is necessary to motivate them in the right way so that the growth of your business is accompanied by the personal growth of the team.
The attributes that will help you make the decision on who to choose are the skills, competencies, their preparation and the level of commitment.
Statistics indicate that the main source of financing for a business at the time of its founding comes from its own savings, family or friend loans and the sale of some asset.
But when they reach the period of success in which they begin to think about the expansion and maturity of the business, they need formal sources of financing that provide them with solidity and the necessary resources with which they can aim for their growth.
Options for the entrepreneur there are usually many, from the same injection of capital through investors and partners, to the contracting of a loan through banking institutions.
To determine the route you are going to take, it is essential that before any decision you have determined a financial plan that will help you to know the payment schedules, the collections, the dates on which you have income, and so on. This plan must be married to a strategic plan that contains the investment budget for the growth you have projected.
In addition to contracting with who offers the best credit conditions as interest, deadline and a timely response, in addition to being a formal institution and experienced.
How to grow
Making the decision on how to expand your business is perhaps one of the decisions that cost you the most work to decide. A company has different ways that allow them to grow, but each one requires a thorough analysis taking different factors into account. These ways are:
The internationalization of the company
Convert the business model into a franchise
Open own branches
By creating new products or services
Through the merger of the business with another
Each one has its advantages and disadvantages, besides this, you will have to be sure that it is time to take the big leap to expand
If until now your decisions have been the right ones, your business will be already in a stage of maturation. This does not mean that you should stop making decisions, because this is something that will accompany you throughout your entrepreneurial life.
But the above will mean that you have one last important decision to make and it is the succession, to whom will you leave your legacy?
Read More: Entrepreneur