Have you heard the phrase “If your business isn’t growing, it’s dying” before? You probably have heard it many times from many different people. The truth is that this is simply not true. You can effectively keep your business the same size if you want to. Think of the mom and pop shops that have been open for decades. Most are still a single location and offer the same products or services. Of course, their prices and strategies may change with the changing markets and economies but their size can remain the same if they choose to.
Reasons To Grow Your Business
Naturally, there are many reasons why you would want to grow your business. However, there are several reasons why you may also want to not grow your business. When you are considering growing your business, it is important to analyze the different pros and cons. Lets go over a few reasons why you may want to grow your business.
Increasing Financial Needs
As an owner of a business, you probably want financial freedom. However, it is completely natural to want to earn more money as time goes on. In order to pay yourself more, you will have to grow your business to accommodate your income as well as any new staff that you may bring hire.
As businesses grow, they tend to become more stable. If you are running a one person business with limited streams of revenue, your business is much less stable than a business with multiple locations and dozens of people on staff. Many people want to grow their business so that it can be more stable in the ever changing market.
If you are running a smaller business, it is very likely that the business depends on you. If you were to be out for a week due to sickness, it may drastically effect the business. However, if you were to grow your team so that the business doesn’t rely on you, this enables you to have the freedom to step away when needed or when wanted.
What if your business is needed so much that you have to turn away potential customers simply because you do not have the time to assist them. This would be a good reason to hire help and grow the business.
Reasons Not To Grow Your Business
I have just went over several reasons to want to grow your business. Naturally, there may be many other reasons that you want to grow your business. However, before doing so, take a moment to consider reasons why you may not want to grow the business. Lets go over a few of the main ones.
Any time that you grow a business, it is going to be stressful. What if you hire extra help but then revenue doesn’t increase as much as you needed it to? What if you have trouble scaling? Even under the best conditions, growth can be stressful.
On top of the extra stress, there may be risk associated with your growth. You may have to hire people before you are sure the revenue will be there or you may consider a loan to have the finances to grow the business. You also have more financial obligations to your business and team.
In order to grow your business, it usually requires hiring new people. This will require you to worry about training, taxes, insurance, accountability, and more. It is acceptable to not grow your business because you do not want this extra layer to deal with.
Cost Of Growth
Depending on your type of business, it may cost you time and money to grow the business. For example, you may have to rent or build a second location to grow the business. Your business may not have the finances to consider growing the business. If this is the case, you may have to look externally for investments or loans. In some cases, you may decide that it is more beneficial to not grow.
So, before you being your journey of growing your business, consider the pros and cons for your business. It may be helpful to ask yourself some questions such as:
- Why should the business grow?
- How will the business grow?
- How much should the business grow?
- Am I prepared to take on the extra risk and stress?
- Do I have the processes in place to hire and grow my team?
- Do I have the finances to grow?
There are no right or wrong answers when it comes to whether you should grow your business or not. Each of these reasons and answers will be different with each business. However, taking the time now to thoroughly consider and discuss why you may or may not want to grow the business will help you tremendously as you move forward. I would love to hear your thoughts. So please leave a comment with your reasons of why you want to grow or not grow your business.