You may have in mind that growing bigger and expanding should be the prevailing mantra for your small business. That corporate order you have been looking for may be just round the corner. But what does it bring with it? Have you ever stopped to consider? Bigger may not always be better for your bottom line . Keeping a tight check on expansion and small business engagement may be the best thing for you. Here are some reasons why
Expansion may change your direction
Your mission and vision may be radically altered by the expansion plan Do you want this to happen? Its good to have as many customers as possible one may think but is that the purpose you started off with in the first place. Your plan would surely have included improving the quality of life of your family and staff. This very purpose would be sorely compromised if you were to take on double shifts and triple shifts to meet expansion goals. Peace of mind is precious. Think about it.
Its a costly affair to expand
Nothing comes cheap and your business plan to reach the next level and market expansion strategies come with their unavoidable expenses. You would have to bring in new facilities, new equipment and of course new staff. Are you up to it? When the euphoria of an expansion opportunity wears off, the hard facts hit you in the face. There is no hard and fast rule that a bigger version of your business with increased expenses will necessarily bring in bigger yields. So use caution, it can save you a lot of uncalled for tension.
Don’t Dissipate your Passion
You started your business because you love what you do. Its your passion. Expansion can sometimes take this away from you. You will have more new responsibilities. The task of building a bigger business may take you away from your primary desire, the inspiration that led you you start the business. In the bigger organization you may have to sacrifice this passion for more mundane business tasks.
Can you compromise your comfort level
You as the small business owner, enjoy complete control over your operations. You have only yourself to answer to. Perhaps you have only one employee or a partner, whom you are very comfortable working with. In such a set up work seem easier to schedule and within your control. You may not have this freedom in a larger business. Staying small gives you leeway to manage your personal life and your work with ease.
Managing more people and money can be dicey
If you are a born manager, then go for it. Hiring can be a daunting task and delegating work, can be even more of a challenge. A reason why many small business owners want to stay small. And no one wants to get into unmanageable debts for the purpose of expansion. Trying to grow too fast is the reason why many small businesses fold up. More staff, more facilities, more debt ultimately leads to more risk.
Slow and steady they say , wins the race. So expanding slowly, organically at a comfortable pace, makes sure that you stay in business as well as adhere to your principles. Growth is essentially the result of business which is done well and such progress is welcome.