Many of us focus on the need to grow. The belief is that the more we grow our business, the quicker we’ll see a return on our investment and the more we’ll see the profit come rolling in.
As much as a booming and expanding business may seem good for your bottom line, growing too quickly and beyond your own control may prove just the opposite, in which cases, sometimes it is best not to grow your business.
So how do you decide when to stay small and when to grow? Here are some important factors to consider:
What will it cost your business to grow?
It’s easy to picture the benefits of new opportunities, but it’s important to consider the practicality of new opportunities. Think of how expanding your business will affect your cash flow. When it’s all said and done, what will your revenue be? Will you even be able to afford to pay yourself at the end of the day? All these financial factors are important considerations before you decide to grow your company.
Are you equipped to handle the extra demands?
Extra demands meaning the need to manage more employees, find bigger office space, pay higher payroll taxes, and the like. While it may be exciting to imagine the positive effects of growing, it’s easy to downplay the amount of extra work and demands that expansion will bring to the table. And as the owner, you can bet most of those extra demands are going to be placed on your plate!
Are you prepared for the effects of growing your business?
Growing your business could mean better profits, but it could also mean less downtime and more headaches. Consider whether you’re ready and willing to give up (at least in the meantime) vacation time, family time, and spare time for other interests and hobbies.
Landscape Management Network is a collection of systems, tools, and training to help great contractors build and manage great businesses.
While the promise of more power and profits is certainly appealing, growing your business may not be a clear gateway to it. Also, in the process of rapid expansion, it’s easy to neglect the original spirit and character of your company that made you so unique to begin with, which could be more detrimental to your business in the long run.
The point to take away here is that growing your business does have its advantages and disadvantages. Whatever path you decide to follow, make sure you think long and hard and make the choice that is best suited to your company’s best interest.
Landscape Management Network is a collection of systems, tools, and training to help great contractors build and manage great businesses.
