1. Why and how small business fail or succeed to grow
2. Business Development
Many small businesses remain
small or even fail, not because
the character is so, but
because it fail to grow and
achieve optimal scale.
Why business fail to achieve
optimal scale? What are the
stages of business growth
normally? How to measure the
success of each stage?
3.
4.
5. Start Up
Doing business can be likened to
build a money machine. As build a
machine, first you have to initiate
the model and then implement it. If
your machine is working, then you Sales COGS Zero
shout, "yes, it works!“
The business model works when
sales have exceeded its costs. SALES
that higher than COST OF GOODS Sales
SOLD or there is MARGIN appears is 100
%
an indicator that your business
model works. COGS
6.
7.
8. Survival
A machine that can be started means
works, but not necessarily to say that
it may run. To be able to run the
machine should be able to survive for a
long time and enough power to get Fixed
Margin Costs
Zero
through a particular threshold.
Business will survive when margin
earned is able to bear the fixed cost, or
beyond the break even point. Break Sales
–
even point is reached when MARGIN is COGS
higher than FIXED COSTS. Yes, 100
%
business may be survive only if there is
Fiixed
profit appears. Costs
9.
10.
11. Consolidation
Profitable business still need
consolidations to be ready to advance
to the next step, that is growth. In the
consolidation phase the focus of
management are returns as ultimate
permormances of profit, sales and
assets.
The measures of good performance or
solid business are returns, productivity
and efficiency, which returns depend
on productivity and efficiency.
Productivity is measured by sales
turnover of total assets, and efficiency
is measured by profits of each rupiahs
of sales.
12.
13.
14. Growth
A solid business with sound good
performance needs to be leveraged to
maximize the value of prosperity of
equity. In the growth phase of business
the focus of management is value as
the ultimate goal of business which
depens on solid returns and leverage.
Leverage is multiplying business wich
has solid performance to maximize
value to reach the ultimate goal of
doing business, i.e. prosperity.
However, leverage should be used
carefully to match the optimal capital
structure.