Sunday, July 1, 2012

Business Expansion

I thought today I would turn to something that has been recently in the news. Most businesses both large and small are in certain sectors of the economy are actually growing this year. Yes, even though the economy overall is still showing weakness some well known companies are actually expanding. This is good to see growth in technology and utilities such as Microsoft and Teco which until recently have been hit hard by huge losses. Some other not so well known are making amazing strides in picking up new contracts and adding new workets. This makes the smart smaller companies more able to generate more revenue than the large conglomerate companies in a weak economy. The fitness of the modern business is heavy depending on outsourcing and new product innovation. Some areas of the economy are ready to start booming like the housing sector which has recently started additional new home orders. This will effect a lot of other people in other businesses if this continues since real estate is the core predictor of how much expansion the economy will do in the future. So look for most businesses to group together with mergers and to consolidate in order to go ahead with planned future expansion. This kind of business plans will work for some businesses but for some others it will spell their overall demise due to lack of financial liquidity. The big gains will be in technology,utilities and  manufacturing which continue to most flexibility and profit margins this year. The best business plan is to start into a business that would be in one of the new growth economic sectors so you would be sure of your success..

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