Growing Your Small Business Made Simple


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Growing Your Small Business Made Simple Wilbur Cross and timely advice to help you manage your small business through the most challenging times of growth and Practical, invaluable, diversification WITHD Ho WN the longer the pre party of Boston Public Library. oiateriaS benefits the Librarn^, no o o V Growing Your Small Business Made Simple Wilbur Cross Edited and prepared for publication by The Stonesong Press, Inc. MADE SIMPLE BOOKS A MADE SIMPLE BOOK DOUBLEDAY NEW YORK LONDON TORONTO SYDNEY AUCKLAND Edited and prepared for publication by The Stonesong Press, Inc. Executive Editor: Sheree Bykofsky Series Editor: Sarah Gold Copyeditor: Kathryn A. Clark Production Consultant: RECAP: Publications, Inc. Proofreader: Scarlett Smith A MADE SIMPLE BOOK Published by Doubleday, a division of Bantam Doubleday 666 Fifth Made Avenue, Dell Publishing Group, Inc. New York, New York 10103 Simple and Doubleday are trademarks of Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc. Copyright © All Rights Reserved 1993 by Doubleday, a division of Bantam Doubleday Dell Publishing Group, Printed in the United States of America January 1993 First Edition Library of Congress Cataloging-in-Publication Data Cross, Wilbur. Growing your p. small business made simple/Wilbur Cross. — 1st ed. cm. "A Made Simple book." Includes index. 1. Small business HD62.7.C76 — Management. I. Title. 1993 658.02'2 — dc20 ISBN 0-385-42429-9 92-21350 CIP Inc. CONTENTS Introduction Ready for Growth PART ONE: EVALUATING Chapter 1 7 GROWTH AND PLANNING ITS MANAGEMENT Charting the Business Life Cycle The Four Stages of the Business Life Cycle 11 How to Plan Growth 17 Bisk-taking 20 "Twin" Cases: Success and Failure in the Growth Stage Making a Chapter 2: Your Business Preparing the Profile 25 Areas to Review: Structure, Commitments, Goals, and 28 Policies Chapter 3: Appraising the Business Climate Economic Climate 31 Profile of Competitive Climate Demographic Climate Climate of Bisk 32 33 34 PART TWO: IMPLEMENTING ORDERLY GROWTH Chapter Development 4: Financial Assistance for Your Financial Plan 39 Financing for Growth 42 Which Financing Option Is Valuing Your Business 46 Remember for You? the Financial Basics 46 44 21 4 CONTENTS Chapter 5: The Tax The The Evolving Tax Picture Implications of Growth: Three Case Histories Management of Taxation 53 Management of Depreciation Legal Structures Chapter 6: vs. Tax Structures Growing on the Computer Successful Computer and Software Service Bureaus Types of Data 66 Growing Space Needs and Location Pains: Transportation and Space Why Change Location? Retail Location 8: Recruiting 60 62 Analyzing Your Space Needs Chapter Applic
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