The easiest way to find capital and reduce or expand a business is through company accounts.To give an example of reducing businesses, if you feel that your pension and monthly expenses exceed twice the financial return of the owner, then you should reduce the number of employees here. For example, if your monthly expenses are 30,000 and the profit is less than 15000 then this means that you have a problem and need to reduce or change the activity, and the reduction must be motivated and liked by the employees.Also, if you have two employees with a total salary of 10,000, tell them that you only need to keep one of them at a salary of 5,000 to 7,000. Believe me, they will both compete and work harder. Thus, one of them will earn 2000, and you will save 3000. So, try to reduce the number of employees.Increasing the business should be in small stages, depending on the current stability and type. Let us assume that the business is selling products and the expansion is a new branch or introducing new products. Is the income enough to cover all of its needs + profit for the owner?If yes, are there competitors capable of expanding their business, so that you need to rush to expand?If there are competitors and you have a fixed income with additional fund, then you need to hurry up. That’s why if you can, go for it.
However, if there is no competitor, the expansion should be small and experimental. By that, I don’t mean keeping it slow; I mean having an additional branch within two to three months or adding a product within a week.
If everything goes well, then keep developing your business. Moreover, if the turnout of branch 1 is large and the staff cannot control the orders, then you need to expand.