Ws4 Obstacles To Expansion Research Paper
WS4 Obstacles to Expansion
Intro to American Business
August 20, 2013
WS4 Obstacles to Expansion
As the consultant to Home Solutions, I would like to identify some potential obstacles your company may face. Cash flow seems to be the main obstacle once a company decides to expand.
Cash flow problems are not unique, in fact it is common that companies face cash flow issues as they experience growth. (Brodsky, 2009, para. 1).
One of the most important steps in gaining control of your business would be to figure out your exact costs of running your business. Conduct a cash flow analysis. Update your financial statement with the most accurate information. Include the loaded costs you pay your employees (hourly rate, plus benefits). Check the cost of …show more content…
Offering stock has advantages and disadvantages. The advantages of having funds available may outweigh sharing your company with new owners. Venture Capitalists (investors who believe a company has great profit potential) can be a source of significant funds. Some advantages are: Investors do not have to be repaid, no legal obligation to pay dividends to stockholders, can improve the condition of your balance sheet. Some disadvantages are: Stockholders have the right to vote for board of directors, dividends are paid from profit after taxes and are tax deductible, needs to keep stockholders happy. (Nickels, McHugh and McHugh, 2013, p. 528).
Consider partnering with other investors or companies. This type of stability could generate the needed revenue to expand and grow your company at a steady and efficient rate.
The economic crises can impact your growth. Research lessons learned from the fall of financial markets, ask questions to business savvy people. Above all, keep good records. Your judgment and integrity will show and build trust with consumers as you grow. (Nickels, McHugh and McHugh, 2013, p. 514)
Intro to American Business
August 20, 2013
WS4 Obstacles to Expansion
As the consultant to Home Solutions, I would like to identify some potential obstacles your company may face. Cash flow seems to be the main obstacle once a company decides to expand.
Cash flow problems are not unique, in fact it is common that companies face cash flow issues as they experience growth. (Brodsky, 2009, para. 1).
One of the most important steps in gaining control of your business would be to figure out your exact costs of running your business. Conduct a cash flow analysis. Update your financial statement with the most accurate information. Include the loaded costs you pay your employees (hourly rate, plus benefits). Check the cost of …show more content…
Offering stock has advantages and disadvantages. The advantages of having funds available may outweigh sharing your company with new owners. Venture Capitalists (investors who believe a company has great profit potential) can be a source of significant funds. Some advantages are: Investors do not have to be repaid, no legal obligation to pay dividends to stockholders, can improve the condition of your balance sheet. Some disadvantages are: Stockholders have the right to vote for board of directors, dividends are paid from profit after taxes and are tax deductible, needs to keep stockholders happy. (Nickels, McHugh and McHugh, 2013, p. 528).
Consider partnering with other investors or companies. This type of stability could generate the needed revenue to expand and grow your company at a steady and efficient rate.
The economic crises can impact your growth. Research lessons learned from the fall of financial markets, ask questions to business savvy people. Above all, keep good records. Your judgment and integrity will show and build trust with consumers as you grow. (Nickels, McHugh and McHugh, 2013, p. 514)