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Developing A Sustainable Small Business

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Running head: DEVELOPING A SUSTAINABLE 1
Developing a Sustainable Small Business
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DEVELOPING A SUSTAINABLE 2
Developing a Sustainable Small Business
One of the main elements to consider when first developing the business plan for a small
company is how the organization will be able to sustain itself over time. It is absolutely essential
that the business not grow to slowly or too quickly so as to both ensure that enough resources are
invested into the corporation in order to realize a reasonable return on equity, and also that such
resources do not run out before sufficient profits can be retained to keep the company afloat in
the future. In order to correctly maneuver the company through this particularly difficult
planning scenario, it is necessary to make predictions about the future status of the business.
These forecasts, while not expected to be entirely accurate, are meant to provide an overview of
what the management of the organization believe to be the future results of the current
environment that the corporation sees itself within.
Short-term predictions are often relatively simple to make and typically utilize analysis of
previous performance to forecast future expectations for the business. For example, retail
companies might examine income over the past year (or several years) and extrapolate from the
data to determine if there are any patterns within the sales that can be used to make predictions
about the next year. If there were a large increase in revenues during a certain season, and a
reasonable explanation can be made for the change that can be expected to continue to occur
each year, this would likely be included in the short-term forecast. This type of prediction
typically extends for just one year from the time of its creation.
Continuing to forecast for many years forward from that point can bring new challenges. Long-
term goals of a business tend to include strategies that require an idea of how the company will
be performing in three to ten years (Radtke, 2015). However, making predictions about the

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Running head: DEVELOPING A SUSTAINABLE Developing a Sustainable Small Business My Name Here My College Name Here 1 DEVELOPING A SUSTAINABLE 2 Developing a Sustainable Small Business One of the main elements to consider when first developing the business plan for a small company is how the organization will be able to sustain itself over time. It is absolutely essential that the business not grow to slowly or too quickly so as to both ensure that enough resources are invested into the corporation in order to realize a reasonable return on equity, and also that such resources do not run out before sufficient profits can be retained to keep the company afloat in the future. In order to correctly maneuver the company through this particularly difficult planning scenario, it is necessary to make predictions about the future status of the business. These forecasts, while not expected to be entirely accurate, are meant to provide an overview of what the management of the organization believe to be the future results of the current environment that the corporation sees itself within. Short-term predictions are often relatively simple to make and typically utilize analysis of previous performance to forecast future expectations for the business. For example, retail companies might examine income over the past year (or several years) and extrapolate from the data to determine if there are any patterns within the sales that can be used to make predictions about the next year. If t ...
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