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M19 Multiplying the benefits
- Most small businesses are run by one person with others helping. Sometimes a product may prove really successful and the business begins to grow. However, it is useful to consider whether this is a good idea.
- Will the local market be large enough to provide enough customers or will transport be needed to reach other markets? Will demand continue long-term?
- Larger production is likely to mean employing more people, training them and managing them. It will mean more detailed account keeping. Is this what you want?
Discussion
- There is a well known saying – ‘Small is beautiful.’ Can this ever be true in business? Discuss the advantages and disadvantages of either staying small or growing larger to meet demand.
- Growth usually means one business taking on more workers and increasing production. However, it could also mean the business agrees to split with several linked businesses working together to meet the demand. Do participants know of any examples of this happening. What would be the advantages? What might be the disadvantages?
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This page was last updated on 04 August 2005
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