by guestcontributor on May 10, 2012
Development and expansion needs meticulous planning. You can’t just simply wake up and decide to open a second or third store of your business, or improve your product line completely.
There are too many things to consider before extending the scope of your business, and the decision should be a product of careful and thorough consideration of factors like emotional readiness, financial, and logistical. The practical idea is to expand only when you see unopened opportunities to benefit your business. It can be a new location that your competitors haven’t serviced yet, or a new niche you want to take.
What you need to understand is that, expansion doesn’t equate to profit. Yes you may be adding more volume with your second and/or third branch, but with all the additional overhead cost, operational cost, etc., you may be spending more than you earn.
The most important thing you need to consider when expanding your small business is the economic scale – is it going to be advantageous for your expanded operation? Your cost/unit fall as your business expands in size, and this would obviously result to higher profit, or lower prices, or both. The idea is to expand only when the economies of scale is showing good opportunities for your business to grow, either in selling more products, providing more services at a lower price to earn better profit for every item.
Though there are lots of growing opportunities in expanding your business, such as buying materials in bulk for cheaper price, having more resources and target market, expansion and growth isn’t always necessary. As a matter of fact, many businesses crumble from uncontrolled business growth. The rule of thumb here is to take things slowly and steadily, incremental growth is always better.
by guestcontributor on March 23, 2012
The business industry in Melbourne, Sydney, and other major cities of Australia is as active as ever. Indeed, there has been a surge of small and large businesses operating in these cities that competitive is also becoming quite stiff. Business owners in Australia are therefore seeking ways in which they can minimize overhead costs and improve the profit margin. The main goal, after all, for being in business is to gain profits by operating in top locations. However, conventional rental methods would mean you need to shoulder a huge cost to maintain offices in Melbourne.
One solution that business owners are looking into right now (especially small or starting businesses) is serviced office. This is a cost-efficient approach to managing day-to-day business operations. The ability to maximize its use though will depend on whether you need this type of service or not.
According to business experts, serviced offices are ideal in the following situations or circumstances:
- You own a small business;
- You are looking to expand your business;
- You are a foreign business seeking to establish an office in Australia for the first time;
- You want to open a new branch for your company;
- You need a temporary office solution;
- Your employee growth rate is rapidly increasing;
- You are looking for a flexible lease term for your business;
- You are not fully utilizing your current office space;
- You do not have enough funds to equip your office with utilities, equipment, or technologies needed for business operation.
Did you meet any of the criteria mentioned above? If you do, then maybe it is time to consider using serviced offices in Melbourne or within your local area. Be sure to take full advantage of the features associated with this service so your business can compete.