Share this article with your network
Help your network to discover new knowledge
It’s this the dream of every entrepreneur: a vertical take-off with exponential growth. But it isn’t always the rockets that ultimately soar the highest. Companies that grow slowly but surely often come out ahead in the end.
The first major challenge facing company founders is to get the business off the ground. Nearly half of all bankruptcies occur in the first two years after start-up. But once the initial hurdles have been overcome and success is within grasp, it’s often tempting to go all-in and expand as quickly as possible.
Don't play all your cards at once. That’s not usually the right way to get a company on track and growing.
Instead, take it slow and steady. There are a few reasons for this. Or to put it another way: There is something to be said against growing too fast. We’ll show you the top four.
Sales are good, the outlook is rosy. It’s all too tempting to grow fast and expand. But before you do, make sure your employees can handle the growth in the first place. Small businesses often have excellent customer service, which is the foundation for their success. But what happens when customer service staff can’t keep up with the pace of growth? You’ve got a company on your hands that no longer meets the needs of its customers and risks losing them to the competition.
Positive cash flow is one of the keys to long-term success of a small business. But grow too fast and too soon and you may not be able to pay your bills. Even if it doesn’t bankrupt you, your reputation in your industry will take a major hit.
When you succeed, it takes your breath away. But don’t let your euphoria distract you from your original goals. Whatever you do to grow, always make sure it’s in line with your goals. Only if your growth strategies reflect what drove you in the first place will you succeed in the long run.
Hard work + cost management + thoughtful growth = Long-term success.