The following points should be considered when evaluating whether growth is reasonable for your business.

Personal

1. Do you have the time to undertake the activities associated with growth and the time the larger business volume will consume?

2. Does your family support your efforts to expand the business?

3. Is your personal financial position congruent with the financial situation of the company?

4. Does your management ability correspond to that necessary to manage growth?

Finance

1. Does your business have the equity level to justify growth?

2. If not, do you have potential sources of equity?

3. Has your business been profitable or shown the potential for profitability?

4. Will your bank be able to cooperate with you in your growth phase?

5. Is the collateral position of the business adequate to meet the requirements of lenders?

6. Do accounting procedures allow you to maintain control of the business?

7. What contingency plans do you have if your initial attempts fall short?

8. Have you researched sources of government assisted funding?

9. Do you have a knowledge of how cash flow interacts in your business to ensure future cash flow?

10. Do you have support people who understand finance?

11. Will the rate of return justify the commitment of resources?

12. Will the value of the business grow?