Because bigger isn’t always better
To grow or not to grow your business.
What a great problem to have.
I’ve found in Paul Jarvis’ book Company of One a great resource for how far workers have gone, and to set limits and why as entrepreneurs.
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Let’s check the lower and upper limits of our era.
The LOWER limit.
Before the 40 hours week, people worked 100+ hours per week with low wages. No wondering they were unhappy about it.
You can check in 30 seconds nbcnews video the history of the 40 hours week beyond the Henry Ford story tale.
You have come a long way if you are choosing between growing or not your business.
The UPPER limit.
You are close to the upper limit and that’s why you’re questioning to grow or not to grow your business.
At least, you’re looking for the better way to grow your business.
You’ll become “humanitarian” for the sake of accumulating more money.
You’ll wear your shirt with your company’s logo in the “humanitarian” help of the moment.
You’ll chase people’s predicament for the sake of free advertisement to your company. Let’s no forget paying less in taxes or avoiding them altogether.
These people are suffering. Who cares? You don’t.
People are dying. Who cares? You don’t.
You’re chasing the cameras, the flashes. There’s never enough.
You’re so clever.
Chase for your values, you’ve lost them, in case you had them.
On your way to printing this huge check for the next show, sorry the next “humanitarian” help.
Think again, Do you really care for those people? You don’t. Leave them alone or donate the money. You already have plenty.
Sometimes, the scarcity of the past leads to the excesses of the present, the outrageous “successful” entrepreneur mindset.
Don’t fall for this trap.
With the black and white picture out of the way. Let’s check the shades of gray.
1 You have figured out how to generate steady reliable revenue, your runway buffer is in place, and you have the investments you need in order to diversify your income in the long run.
It seems growing your business is the natural next step. However, you question the blind growth mind-set. You don’t want the complexity, stress and responsibility that comes with it.
2 Growth as a primary strategy failed to 74% of startups according to a study done by the Startup Genome Project, which analyzed 3,200 high-growth tech startups.
3 You work in a profitable niche that big companies overlook to chase for bigger markets and higher revenues.
4 Getting more customers to increase revenue isn’t the best strategy for success. User growth costs more than user retention.
According to the Econsultancy/Responsys Cross-Channel Marketing Report, “adding a new customer costs five times as much as keeping an existing one.”
5 The average life span of an S&P 500 business is only fifteen years according to Richard Foster, a lecturer at the Yale School of Management.
You will go from building a relationship with your customers to please investors as a priority.
Paul Jarvis proposes only one rule to grow or not your business, “stay attentive to those opportunities that require growth and question them before taking them.”
There are different approaches to career and business far from usual. Some people focus on the retiree early plan, others on the entrepreneur lifestyle, for example.
Where do you want to be ten years from now? The choices you make today will create that future. Choose wisely.
Did you like what you read?
Author Paul Jarvis
Company of One: Why Staying Small Is the Next Big Thing for Business
Published by Houghton Mifflin Harcourt (January 15, 2019) )
ARC by NetGalley