To grow big or stay small?
Business coaching Brisbane
This is a question worth pondering. Going bigger in business is not always better. Your business only has to be big enough. But big enough for what I hear you think! Big enough to achieve the goals you set at the start.
The ideal size of your business is something that should be included in your start-up business planning. You may not have all the answers but at least you should recognise that, with success, the problem is likely to arise.
For example, if you own a home business, the size of your house defines the physical limits of your business. You don’t want it spilling over onto the footpath, while customers fill the street with their cars.
However, business growth is not always a voluntary decision. After all, business is supposed to be driven by demand. If you have something interesting to sell and people know about it, they will generally sign up. The problem is that once you gain momentum it is hard to stop.
When you do decide to grow bigger, voluntarily or not, you come to realise that there are many interpretations of the concept of ‘bigger’. For example, it can mean:
- More products
- More people
- Bigger premises
- More physical storage
- More digital storage
- More / bigger / better equipment
- More IT / online technology
- Replicating more of the same (franchising)
Which one is right for you depends on your needs and the needs of your business.
A word of warning! One of the ironies of demand driven expansion is that a business can go broke doing it. Sudden expansion can quickly drain cash that should be operating costs.