A: Every business goes through a growth spurt and whether it's a multi-national corporation or an entrepreneurial enterprise, expansion is a tough process to navigate.

The real danger for any expanding business is that it does so too quickly or in an uncontrolled way. When this happens, cash flow and customer satisfaction are usually the first casualties and, in extreme circumstances, negative cash flow and dissatisfied customers can result in the demise of a previously-flourishing concern. The trick, then, lies in managing the growth process in order to reap the benefits in both the medium- and long-term. There are important things to bear in mind and some pitfalls to avoid in order to manage the process optimally.

Plan Your Expansion

It may seem self-evident that any entrepreneur undertaking a business expansion would do so in a planned way. The truth is that many businesses expand in reaction to circumstances and don't draw up a solid expansion plan.

During the planning phase, ask yourself:

• What is the real demand for our products or services at present?
• What is the projected demand for our products or services over the next two to five years?
• How big do we need to grow in order to meet that demand?
• How will changing competitor activity affect our business over the next two to five years?
• What should our excess capacity