Expansion – Sensible Business Practice Part 5

Expansion by Duplication

While a percentage in business manage to stay afloat without proper systems, a number don’t. Do you want to flounder around fumbling your way through simple tasks or have a functional approach? Want to evolve, keeping up with the times or stick with things as they are, falling behind the competition or progress and go through sustainable expansion?

What do you feel would happen if one tried expansion by duplication of non-existent or poorly constructed, untested systems? Would such likely be conducive to a successful practice? No, in short these businesses will typically struggle and ultimately fail. Unfortunately too many in this situation tend to seek help when it’s too late. This can occur because they never saw it coming.

More often than not in this situation it’s reasonable to assume better planning and understanding was lacking. Disregarding Sensible Business Practice is seriously unwise. The more invested cost/debt wise the more serious it is. To take poorly executed systems or a business with little to none and expect to  duplicate such is economic suicide.

The term economics comes from the Ancient Greek οἰκονομία from οἶκος (oikos, “house”) and νόμος (nomos, “custom” or “law”), hence “rules of the house (hold for good management)”.

Expansion while being unprepared is asking for trouble. Anyone of the mindset they can duplicate nothing more than a dream are also capable of thinking they have a successful means to do something when they don’t. Don’t be one of those people. Do your due diligence before and not later, when it’s potentially too late. Set up a solid foundation from the get go and only expand when it’s been well-tested. Don’t assume it’ll work.

On the flip side, it’s possible to have a profitable business if you hit the market and crack it given the right set of circumstances. This can occur irrespective of solid systems leaving you wide open to failure. It’s important to evolve with the times instead of becoming stuck doing the same things since day one. In other words, on the slim off-chance this actually happened, you still need a solid plan with good systems.

Left alone a business like this typically becomes a gigantic sponge, absorbing every ounce of liquid/capital. This tends to happen because it takes some extra effort to evolve and it’s easier to stay complacent or because one believes they have something they don’t.

Do yourself a favour and never take short cuts. Pavé the road to success in stone before ever attempting expansion of your business. Understand the fundamentals of business. Without Sensible Business Practice you may well find yourself where others have who tried and failed. We don’t want that for you and neither should you. We hope you take the necessary steps and succeed. If you need help, ask.

Wishing you all the best in your endeavours – Team Account Wise