Properly Handling Business Growth

Achieving business growth can be found at the top of the list of most businesses, however business growth can also backfire and get your business into trouble if the necessary preparation is lacking in your organization. Although it can hard to anticipate growth, it is crucial that quick steps are taken to address and accommodate the growth within your business. The most common responses to business growth will require you to increase your real estate space, hire additional employees, purchase additional equipment, or raise additional funding.

The best practice to handle business growth should be clearly outlined in your strategic plan, and should be continuously updated as your business evolves. You may already know of a company that has experienced issues because they grew too fast, and lacked the proper planning to cope.

Here are possible examples of what can occur and possible solutions:

  • Business growth required you to purchase costly equipment, however due to poor cash flow, and lack of cash reserves you were not able to acquire new equipment, and further failed to service the additional work. What do you do? Not being able to service a new contract can have penalties involved, not to mention that it will also diminish your reputation. Having cash flow issues may be inherent in your industry, however having a good relationship with a banking institution or investor will help keep your business in tact. A line of credit with a sufficient amount is always recommended to get you out of a jam.

  • Business growth required additional employees, however you did not plan ahead of time, and therefore created a strain in your current workforce. As a result you will incur additional cost in overtime pay, lowering your profit margin, as well as run the risk of mistakes that can be made due to overworking current workforce, and in the process running the risk of jeopardizing the quality of your service. Having a labor planning process in place will help you determine the amount of employees required, as well as what additional staffing will need to be added to handle additional business growth.

Regardless of the industry, every business can be faced with the two examples given above. Plan till it hurts, because being in business will give rise to multiple challenges that you have to maneuver through in order to come out a winner. Business growth does not always mean more profit to the bottom line in that the opposite is just as likely to occur. It may require you to increase your administrative staff, compliance, training, and facilities, which all translated into additional cost. However, planning and taking calculated steps should keep your business in good shape, as well as help you determine what is considered health growth for your particular business.

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An Introduction To Commercial Real Estate Agents

Commercial real estate covers a large chunk of the real estate world. It includes office and retail properties like shopping centers, industrial properties, land and investments and hotel /resort properties. There are various agencies involved in this line of business and they aim to provide the entire range of corporate and investment services to the buyer. One important aspect is the errors and omissions insurance for agents dealing in real estate. Since this line is prone to malpractices, this insurance provides some coverage against it. The risk always exists, no matter how well you complete the job. It basically covers payment of claims for a variety of points that may come up against a real estate agent.

Low rates, easy mortgage, loans for a low down payment are some of the factors that have led the investors to believe that there will be a rapid increase in prices of real estate. It shows that housing equity is landing softly while rates are rising and this has given the economy a boost as a whole. A crash in this sector could lead investors into trouble

as they will have little or no equity.

When speaking of real estate, it goes without saying that there are a lot of related agencies at work here. There is a National Exchange Service which is used by property owners to defer taxes in such a way that the property is sold at the maximum value and the net worth is protected. Cushman and Wakefield are into investment brokerage: they represent the tenant and provide an advisory service. There is also an organization of brokerage firms for commercial real estate, privately owned, which endeavors to help clients make the best decisions regarding real estate investment opportunities. Colliers International and The Staubach Company also provide real estate services to their clients. The world’s single integrated service provider worldwide is the Jones Lang LaSalle. New America International covers every conceivable aspect of real estate and its related services.

A little bit of research will get you the best agents, the best deals and the pertinent information to make the right decisions.