Any successful business that matures past the start up stage will face the dilemma: Should they grow bigger or stay the same size?
As cash flow and profitability increase, underpinned by loyal customers and rising demand, the temptation to grow bigger is as strong as the potential for increased rewards in doing so.
But it should be remembered that some small businesses may be anxious about growing. The idea may have always been to avoid the complications and pressures of big business. Business owners may wish to preserve the entrepreneurial spirit that flourishes in small, hungry businesses. Or they may hope to keep close ties with customers and suppliers, maintaining the personal touch. They might even worry that growing the business may dilute the camaraderie and close team dynamics of a smaller business. Desires and concerns like these may be so strong that the idea of growing too big may seem like a change for the worst.
Whether you want to grow your business or not, it’s important to focus on business planning in order to maintain control. Let’s say that you are tempted to grow but are concerned about losing the ‘personal touch’ with your customers. In this instance you should aim to tackle this issue closely in your growth plan. For example, your plans may include the appointment of customer account managers whose sole responsibility is to ensure high quality care of customers; or you might decide to employ someone to take on elements of your day-to-day workload in order to free up your time to focus on customer relations. Conversely, if the prospect of growing by recruiting staff is so costly or bewildering that you don’t want to take such a risk, you may need to plan how you are going to fulfill or manage customer demand without extra help. Often, even the act of not growing needs to be planned.
Of course, growth can too easily be misinterpreted. Sometimes growth isn’t about employing more people or raising finance for big investments and grand plans. In many ways, a business can ‘grow without growing’. Growth could be about consolidation; through increasing efficiencies, improving current processes, or raising prices. From this perspective your growth plan may be focussed on staying ‘small’ but growing in terms of productivity and profitability. Remember - it’s easy to confuse size with greatness. Many business can be great without being big; indeed, some businesses may be great simply because they are small.
Whatever your perspective on the meaning and virtues of business growth, a key step to take - whether you want to grow or not - is to have a plan. If you have a plan, it’s more likely that managing your business will continue to be exciting and rewarding, no matter of its size.
Download guide - Deciding whether to grow
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