|
|
How Can a Company Grow Successfully From an Entrepreneurial Start-up to a More Stable and Better Structured Organisation? (Report Date: January 2003, Full Report: 20 pages) Summary This report examines how a small company can manage internal change successfully in order to grow into a larger, more stable and better structured organisation. Small businesses are now recognising that success is not only determined by their initial ability to compete effectively in the market, but also by their ability to grow and improve their business performance on a continuous basis. In order to do this, those businesses need to understand what it takes to move successfully from a small entrepreneurial start-up company to a more mature and better structured company. Until now, most of these companies used to see undercapitalisation as the main threat that could prevent them from growing effectively, but they are increasingly establishing a direct link between human resources issues and business performance. This is not to say that financial management is not important, but the neglect of human resources and change management issues during the company’s growth stages can be just as damaging to business performance. The growth process gives rise to new conditions and new demands, and companies need to make internal adjustments in order to meet those new requirements. They need to make changes to their organisational processes and work practices, since what were previously considered strengths can become weaknesses that can hold a company back from efficient expansion. The decision to grow a small business should be carefully planned and the risks involved should be thoroughly evaluated. Expansion needs to take place without compromising owners, employees, or customers. In other words, they all need to emerge as winners. This report provides recommendations for successful company growth.
|
