Advantages and Disadvantages of Business Growth

Advantages and Disadvantages of Business Growth

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  • Benefits of a Growing Buisness
  • These the Benefits of a Growing Buisness: Purchase cost one dollar per unit Sale Cost one dollar per unit
  • Economies of Scale
  • Economies of Scale is when a buisness has lower unit cost because of its large size
  • Methods of Expansion
  • Methods of Expansion is when a buisness can grow in size through: Internal Growth External Growth Franchising
  • Internal Growth
  • Internal Growth is when the buisness grows by hiring more staff and equipment to increase its output
  • External Growth
  • External Growth is when a buisness merges with or takes over another organization 
  • Disadvantages of Expanding
  • Some Disadvantages of Expansion is: Larger Debts More Competition
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