Business Growth and Planning
Most successful businesses don't stay small forever - they grow, and there are smart ways to do this. Internal growth means expanding naturally by opening more stores or launching new products. External growth involves joining forces with other businesses through mergers or takeovers.
Franchising is a popular growth strategy you'll recognise - think McDonald's or Subway. The franchisor (original company) sells the right to use their name and products, whilst the franchisee (new business owner) gets a proven business model with training and support.
Growth brings economies of scale - basically, the bigger you get, the cheaper each product becomes to make (thanks to bulk buying and shared costs). However, watch out for diseconomies of scale where getting too big actually increases costs per unit due to communication problems and slower decision-making.
Business plans are essential documents that outline what the company does and hopes to achieve. They help test if ideas will actually work financially, set clear objectives, identify potential problems, and convince investors or banks to provide funding.
Key insight: Location matters massively - businesses must consider costs (rent, transport), access to customers, competition, and availability of skilled workers when choosing where to set up.