During the initial term of a successful business, as seen from a financial perspective, control over growth processes is of vital significance. In larger companies and those in start-up mode, your salary alone could be a significant cost of controlling the growth of its business. The sooner you realise this, the lower your business risk and the more quickly your business can successfully reach a plateau.
Controlling the costs of growth is ultimately the key formula for success and should be done professionally at any time. It is estimated that less than 10% of the recipients of business funding actually use the funding they are given. Whether you are a start-up, a large corporation or an organisation involved in a strategic expansion, controlling your own costs could become a key part of your future success.
Tertiary Cost Examples
Your business supplies will often incur any number of tertiary costs.
For example, whilst the records are being prepared, you may incur additional teleconferences to address any last minute questions or queries. It might even require you to visit the office of one of your suppliers or customers to answer a question you’ve just answered.
Also, additional office space, additional office equipment as well as additional time spent looking for those business supplies will increase the potential that it may cost you. It won’t take a degree in Accounting 101 to accept that if your sales database tracking software is faulty, and you are not familiar with your back office processes, you may end up with a demanding customer.
Keeping The Professionals
You may have already recognised the need to retain a competent IT professional who has the skills to provide efficient business continuity in case of an emergency. By controlling the costs of business growth, you reduce the fraction of hours a computer professional would require to operate.
Moreover, you are certain to have already considered a dedicated IT department – the appropriate personnel and procedures to ensure things work just as well when you go to sit at the pleasure seek or read in your laptop.
Research and Planning
It may be difficult to control the growth process and its associated costs but all the research and planning in the world won’t make good business sense unless you can effectively control the very source from which you need control – the business itself.
As such, one of the greatest opportunities now available to you, whilst you plan on controlling the growth of your business, is to speak with your employees and the people you work with. By making yourself intimately familiar with the processes involved in fulfilling your business roles and duties, you have a significant tool to making positive changes to control additional expenses.
In addition, by seeing the entire business crumble – literally in front of your eyes – you have an effective tool that enables you to resume control and manage your business in a clear-cut fashion.
It is crucial to your business growth right now that you make losses. In many businesses, the true reason why “fading sales” are experienced within a business is simply a result of Internetill salespeople entering your websites. Therefore, it is crucial that the Managing Director take over your Internet filters and “hosing” them down with a pertinent advertising or sponsoring promotional message, you can substantially limit the overall duration of your internet surfing by the end of month.
The same theory can be applied to the other end of the scale of your office. It’s your job to design internal processes that capture the passing of your business processes for internal review, analysis and control.
On the occasions you have seen any of your staff engaged in an internet-related activity, have they all been paid a positive impression? Can you answer “YES”? If, conversely, them not taking your online associates’ lead, have they become any of your associates?
If you clearly see any of your staff not operating at their best, it is time for you to make sure they accomplish those tasks that have been omitted from their daily routine. Any person in an active role to ensure their success must own their own business processes.
By having the ability to own and implement your own service or product bible and, subsequent controls over the expenditure of your business, you will be able to take control of your business risks and controls. By using a single document as a starting point for the controls you will provide your staff, it will be so much easier for you to now keep a tight strict control of all the expenditure within your organization.
The companies who have mastered this system, and not goofed up harnessing it, variously regard it as their most useful business management tool. By controlling the costs of their growth, not only are business profit margins at home guaranteed, but so are the staff and personnel of the organisation.