Planning for Business Growth and Expansion
Planning for Business Growth and Expansion
There is a tremendous amount of information to be considered when starting a business. Not only is there planning for the business you are experiencing at the current moment, to maintain success an owner must plan ahead for growth and expansion. This planning should include the structure of the company as it grows as well as planning for any type of business product. I plan to discuss the detailed projects and plan regarding growth and expansion of a dot-com start up and the challenges that may be faced along the way.
Business Phases
The business at hand is a dot-com start up that involves renting apartments to students. Phase One (see example page 6) has five employees. The original organizational structure of the company had three Salespersons, one Accounting/Billing person, and the owner. The owner handles all of the apartment maintenance, is an extra salesperson and performs any extra duties as needed. Organizational structure helps to define how job tasks are formally divided, grouped, and coordinated, (Robbins, 2010). The Salespersons and the Accounting person are specialized into their departments but due to the small size of the company there may be some overlap in duties.
Phase Two (see example page 6) has developed very quickly and without planning. The company is currently at 30 employees and has grown 500% over the last six months. This growth has required a more in depth look at each individual job and has required more work specialization. Work specialization is the degree to which activities are subdivided into separate jobs, (Robbins, 2010). A manager has been brought in to strengthen the chain of command and manage all the processes and employees to ensure each area is running smoothly. At this point, the small size is still manageable but the chain of command is not a hard and fast rule with the owner still very involved in the day to day aspects of the business. The owner still makes all
There is a tremendous amount of information to be considered when starting a business. Not only is there planning for the business you are experiencing at the current moment, to maintain success an owner must plan ahead for growth and expansion. This planning should include the structure of the company as it grows as well as planning for any type of business product. I plan to discuss the detailed projects and plan regarding growth and expansion of a dot-com start up and the challenges that may be faced along the way.
Business Phases
The business at hand is a dot-com start up that involves renting apartments to students. Phase One (see example page 6) has five employees. The original organizational structure of the company had three Salespersons, one Accounting/Billing person, and the owner. The owner handles all of the apartment maintenance, is an extra salesperson and performs any extra duties as needed. Organizational structure helps to define how job tasks are formally divided, grouped, and coordinated, (Robbins, 2010). The Salespersons and the Accounting person are specialized into their departments but due to the small size of the company there may be some overlap in duties.
Phase Two (see example page 6) has developed very quickly and without planning. The company is currently at 30 employees and has grown 500% over the last six months. This growth has required a more in depth look at each individual job and has required more work specialization. Work specialization is the degree to which activities are subdivided into separate jobs, (Robbins, 2010). A manager has been brought in to strengthen the chain of command and manage all the processes and employees to ensure each area is running smoothly. At this point, the small size is still manageable but the chain of command is not a hard and fast rule with the owner still very involved in the day to day aspects of the business. The owner still makes all
References: Robbins, S. P. (2010). Essentials of Organizational Behavior, 10th edition. New Jersey: Pearson Prentice Hall.