Identify five ways a business can grow after its first year in operation.
Beyond the second year of business, management can take several initiatives. Four of the most crucial areas of focus should be on long-term financial planning, strategic planning, objectives for growth, and long-term marketing plans. Each of these areas is the most crucial to long-term business success. During the first two years of business, management is trying to get the business off to a start. Plans, objectives, goals, and strategies will be changed extensively during the first two years in order to accommodate the needs of the business. Starting with the third year, it gives management the ability to focus-in on the long-term needs.
Long-term financial planning is a key area. By this point, the business has established the basic budget that they need for sustainable operations in each year. The suppliers, vendors, and other processes are already established. Because management can determine based on the first two years of experience what the revenue and expenses will be, long-term financial goals can be planned for the company. These goals typically include capital assets that the company is considering purchasing, reserve funds due to any possibility for economic instability, and also if and where the company will invest their ...
The solution provides a detailed discussion with references listing four requirements of businesses beyond the second year of business, and also identifies five ways a business can grow after its first year in operation.