Growth Strategy for Small Business - Essay Example

Lack of focus is also evident when the business purchased the café as this indicates a deviation from core competencies. Inability to manage human capital to support the achievement of the objectives implies that there was no clear vision.

The inability of the partnership firm to plow back any profit generated is another clear indicator that there was no clear focus. The financial system adopted by the company was very poor. This led to poor financial management (Martorell 2006, p. 136). KITSOL owners did not bother with the amount of net profit but they were rather interested in the number of cash flows. The business problems are attributed to bad advice from some of the members of the management, for example, the accountant.

When Dean complained about the poor end month results, Terry claimed that there was no need to worry so long as cash flows remained positive. It is the function of the accountant and other management personnel to give shareholders proper advice. They did pay much attention to the monies that had not been collected which led to an increase in bad debts which in turn affected the profitability of the partnership. It is imperative for a business entity with proper strategies to have contingency plans in order to gather for emergencies that might arise due to the loss of a resourceful employee.

Sidetracking of Greg to the café brought the supervision process to a standstill. Poor human resources management in the firm is evident by the failure by the business to put a strong management system that is not so volatile to the walk-out of knowledge-based resourceful person. It is not ideal that funds that are meant for running the business are spent without proper budgeting. Dean and Bill use the funds to purchase luxuries and change the lifestyles of their families. Improper record-keeping and filing of important documents is the greatest mistake that was committed by the owners.

Dean could not trace where he had placed the partnership agreement form (Kaplan 2001, p. 245). Growth Strategies during the growth of the business According to English (2003, p. 111), shareholders of a business are obliged to ensure that the entity grows constantly.