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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
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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:
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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