Getting your home business off the ground is the first major challenge to overcome. Once this is achieved your focus then turns to how to grow the business and make it a profitable entity. I began my home business with a very meager sum of $300.00 (three hundred dollars) and within the first eleven years of operation was able to grow the business to revenue of over $9,000,000 (nine million dollars). When your home business begins to grow, you must learn to delegate, innovate and concentrate on the area of your expertise. If you insist on holding to all aspects of the business, you’ll stifle the growth and the business can bleed to death.
When my sales volume began to approach about sixty thousand dollars, I brought my wife on board to help with the keeping of the books of the company while I gave my time totally to building a thriving client base. Managing the growth of your business is the ingredient that guarantees the survival and solvency of your home business for the next generation. Within the first five years of your business, no matter how quickly or consistent the sales volume and the profit may seem, it’s not time to rush off to buy that dream home, car, boat or take expensive round the world expeditions.
I could recall during the fourth year in my business my sales volume was over hundred thousand dollars and my accountant made a surprising remark. He told me that among all his clients, he had observed that despite the rate the business was growing, I’ve not made any major personal purchases. According to him some of his clients would’ve spent ten thousand dollars or more on their personal toys. I learned a lesson earlier, in sales nothing is really guaranteed, it’s always better to reinvest building equity in the business than on yourself.
You may be reaping substantial profits for sure, but remember managing your profits is very essential for growth and expansion. Sales figures may be impressive, beyond your wildest expectation, but don’t forget business has its hiccups. You could be tempted to venture out into areas that you couldn’t previously but be sure you’ve put aside three to six months of your monthly expenditure before such move. Be careful not to plunge into consumptive habits that may suddenly drain your capital and frustrate your future growth. Bear in mind that one of the constraints that face small business is the source of capital. Let your growth be measure by the assets that you’re building in the business than any other thing.
Take a deep breath, sit down and consider how to maintain and possibly increase your market share. Ask yourself, are these sales figures sustainable for the next three years or more? If you’re uncertain, begin to develop ways to bring your home business to a level of stability and guaranteed operation through the business cycles.
Managing your home business growth is a very important factor that needs no oversight. I’ve watched many entrepreneurs start profitable businesses and are successful for several years then they encounter problems because they didn’t put into effect the right mechanism and self-discipline into their growth management.