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Increase enterprise capacity

Increasing the enterprise capacity doesn’t mean increasing its production volume or selling more products only. This involves various areas of activity and it is up to the entrepreneur to decide which direction to choose. It may even involve the capacity to learn or to be able to adjust easily and quickly to a new conjuncture at a certain moment (particularly if the start of business was based on re-qualification in the given area and you became an entrepreneur because of „necessity” rather than „willingly”). The important thing is to feel the right moment for a start and have the necessary financial resources for making this step. Ask yourself: „Is it necessary for me to invest in this right now? Shouldn’t I wait for a while to strengthen my position on the market first?” However, if you are sure it is right time, do it!

Areas for extending capacity

Production – provision – Increasing the production/provision capacity – this action is timely when the demand has increased, your product or service has a good positioning, and the situation makes you respond adequately to the clients’ requests in order to not loose ground before the competitors, because no matter how attractive your goods are under various aspects, if there are repeated „gaps” in the stocks or periodical stagnations in the service provision process, the consumers will be forced to find other sources for meeting their needs. Along with this, there is a risk that the consumers may become negative newsmongers about your firm. Another reason for increasing the production/provision capacity can be the export opportunities that may emerge in the process of unfolding your activity.

Placement Diversifying the distribution channels – Also as a result of the growing demand, it may be necessary to apply to new distributors who have the possibility to place your products in other zones of the city or in new localities not listed in the work plan based on which you guided by in your activity up to   a certain moment, in order to improve sales. Or, if the financial resources allow, you can create your own distribution network (such decision, however, should be made only after a comparative cost analysis).

Promotion – Being well positioned on the market doesn’t mean you should reduce your promotional activities, because the public will forget about you quickly due to the avalanche of well advertised new products which can easily substitute your own product. This implies, firstly, increasing the funds for developing and placing new publicity messages. Secondly, establishing a team of professionals in marketing and communication to substitute the creative services of specialized agencies (in this case again, the decision depends on the comparative analysis results).

Information technologies - Increasing the information processing and storage capacity. This means increasing the number of computers, substituting the old computers with the cutting edge ones, purchasing new software, and hiring properly skilled staff.

Human resources – Increasing the staff; ensuring quality professional development – Evidently, the extension of production/provision capacity (relevantly motivated) imposes the need for taking into consideration some numeric parameters with respect to human resources. But you need to equally take into account the quality factor as well, investing in the professional development of your current staff, their on-going training, as well as in gaining their loyalty (this will considerably diminish the costs for external consultancy). It is also necessary to develop stricter criteria for selecting new employees. At this stage, your company is supposed to already have a good image, more consistent payment resources, being able to correctly appreciate competence from the financial point of view, and your requirements should therefore be higher. At this stage of development it is not worth accepting the „recipe” for taking young people who want to gain experience only for the reason of saving money by paying smaller salaries to them. If your want to be competitive, you need professionals, otherwise you will not be able to stand competition.

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