Topic > How to Run a Small Business - 1577

IntroductionA small business must be managed with care and attention to produce the desired amount of success which is achieved by taking the opportunity on future expansion plans and investment decisions, which will enable the organization to grow. Smaller businesses looking for the opportunity to expand or grow should practice the intensive growth strategy. A growth strategy should be implemented to ensure that all organizations seeking to grow in the future use performance measurement and goal-setting systems. An organization must decide on a business form that offers the owner freedom, as well as protection from any type of liability. Staff and organizational structure are vital to the survival of any organization. Growth Strategy Some small business owners have a goal of growing into a larger, more corporate organization. The reality of what actually happens is small. “Research suggests that only one-tenth of 1% of companies will ever reach $250 million in annual revenue” (Dahl, 2010). An intensive growth strategy should consist of market penetration, a market development plan, alternative channels, product development and new products for new customers. The next type of growth strategy that might be used by an organization is a growth imperative strategy or an acquisition. In most cases, an acquisition is the perfect example for organizations that find themselves in a downward spiral. Performance measurement systems and goal setting will provide the organization with vital information about the market and how to direct its focus and the company. It will also provide a starting point for a goal-setting system that will help the owner or manager implement growth strategies. A manager must be aware of…half of the paper…the organization is managed. Any manager can detail the organization to be managed to the best of his or her ability. ReferencesDahl, D. (2010). How to develop a business growth strategy. Retrieved from http://www.inc.com/guides/small-business-growth-strategies.html.Davis, S. (2014). Organizational structure and personnel. Retrieved from http://smallbusiness.chron.com/organizational-structure-staffing-10875.htmlInfo Entrepreneurs. (n.d.). Measure performance and set goals. Retrieved from http://www.infoentrepreneurs.org/en/guides/measure-performance-and-set-targets/.The Company Corporation. Types of business entities. Retrieved from https://www.incorporate.com/business_structures.html.The US Small Business Administration. (n.d.). What the SBA offers to help small businesses grow. Retrieved from http://www.sba.gov/content/what-sba-offers-help-small-businesses-grow.