success of any entrepreneur

The level of growth attained by any entrepreneur within a specific time period determines their success. Because the contemporary business world is so dynamic, managers and entrepreneurs are developing new and complex management methods to allow them to attain their development capacity within the time frame specified (Yetman & Yetman, 2012). Nonetheless, up to a certain point on the business growth curve, a company’s growth becomes important and advantageous.

Accepting to stick with the current plan is one of the expansion tactics that a firm can use. An organization may opt to pursue the current business plan especially when the future expansion plan may seem costly when investments exceed the returns of the new enlargement plan. A new scheme adopted by an organization can only be effected when the management evaluates its success and finds that it can give the best returns for the organization within a short period.

Closing a company is one of the most important part of a business organization life cycle. However, the closing of a company requires the owners to follow some laid down procedures by the local and central governments. The steps involve in determining whether there is a condition calling for its closure, get advice from experts, file resolution documents as well as cancellation of all registrations, business names, permits, and licenses. Besides, complying with labor and employment regulations, resolve all the financial commitments and finally keeping the business records.

Entrepreneurs may opt to sell their company in case it has little market value. If the firm has a higher risk of failure, then the owners may choose to sell it through merger and acquisition to another big company. An entrepreneur may also decide to sell the company because there is need to consider a change in another line of business.

Many entrepreneurs and managers often consider an organization’s growth is dependent on the pace of accelerated growth. The most successful organizations today understand the need to slow down the growth of a company by determining when it is indispensable to speed things up and when to take it slow (Hanacek, 2016; Schappacher, 2016). Nonetheless, too much growth of the organization can bear meagre outcomes accompanied with a lot of management problems.

Every company must always submit its financial progress of a given fiscal period to the respective board of directors as well as to the government for the purpose of auditing the business’s assets. A 90-day is enough for the company to provide its quarterly financial statement. Business organizations need to release their quarterly financial statements as well as the balance sheets this period may be from January to March. Therefore, it is mandatory for the team to give this exercise a 90-day extension to handle the cash flow problems to help the management in determining the direction of the company towards attaining its financial objectives.

Expenses are the cost incurred by an organization in operation. Every entrepreneur starts a business organization with the aim of making profits; however, high expense and cost of operating the business may adversely affect the profitability level of the company (Mithas et al., 2012) Therefore, lowering costs of running the business increases the profitability of an enterprise, but that is achievable if only the price of sales remains constant (State, Popescu & Toancă, 2015). A company that can truly lower the costs without upsetting product quality, as well as the price of commodities, will attain higher profitability. Other possibilities for the company include investing in research and product branding to improve the sales of the company in a bid to attain the objectives of the enterprise.

References

Hanacek, A. (2016). Big-bang theory: Universal Pasteurization Co. continues to expand quickly and aggressively, with no signs of slowing down. The National Provisioner, (7). 22.

Mithas, S., Tafti, A., Bardhan, I., & Mein Goh, J. (2012). Information Technology and Firm Profitability: Mechanisms and Empirical Evidence. MIS Quarterly, 36(1), 205-224.

Schappacher, E. (2016). Rapid rise taking on a diverse array of new endeavors, Red Valley Landscape & Construction is growing quickly, with no signs of slowing down. Landscape Management, (7). 38.

State, C., Popescu, D., & Toancă, L. (2015). Crowdsourcing Small Tasks as a Method of Reducing Operating Expense While Protecting Intellectual Property: A Case Study for Enterprises in California and Romania. Proceedings of The European Conference On Intellectual Capital, 454-463.

Yetman, M. H., & Yetman, R. J. (2012). The Effects of Governance on the Accuracy of Charitable Expenses Reported by Nonprofit Organizations. Contemporary Accounting Research, 29(3), 738-767.