You are here:

Managing a Business/Dealing with growth and uncertainty


Donald Marr,

Thank you in advance for reading. Id like to know your opinion, in general terms (I'm not looking for any specific answer), what you think business owners usually do on one hand, and what they should be doing, on the other hand.

To expose my questions, Im assuming a good producing factory (i.e. jeans). In general terms, how should a business deal with growth in demand in terms of planning for: (1) Fixed assets as machinery, plant and equipment ; (2) labor.

(1) More specifically, should a business leave some machinery and equipment idle, in order to be able to fulfill future demand growth? (I mean intentionally leaving some extra capacity to allow future growth).
(2) Additionally, should a firm use overtime before hiring additional labor / equipment / machinery?

Thank you

Growth is not guaranteed so using company equipment purchase money to purchase equipment for possible growth would be a poor idea. the money should be used to help grow business though product merchandising, advertizing, ect.

As far as labor it would make better business sense to use overtime and temp help until you are confident the additional growth is stable. That goes for equipment if it could be leased or rented. Idle equipment will cost you in tax incentives as it will depreciate and not produce.  

Managing a Business

All Answers

Answers by Expert:

Ask Experts


Donald Marr


I can answer any questions concerning small business operations. Employee training, inventory, purchasing, and all aspects of what is needed to have a successful business.


I have over 35 years as a Business consultant helping various types of businesses.

SBA Member


BS Business

Awards and Honors
I have received many awards from Business affiliations.

Past/Present Clients
First Brand STP Inc.Barnies Coffee Safeway Scafold Brothers Coffee Publix Food Stores Inc. Winn Dixie Food Stores Inc. PepsiCo Inc. KFC Inc.

©2017 All rights reserved.