As with many things in life, size isn’t everything. You may be better off, both financially and emotionally, staying as a small business.
Growing your business may make you wealthier and give you increased status (if that’s what you’re after). But growing a business involves plenty of difficulties that should give you pause for thought:
- Increased borrowings. You’ll probably need extra short-term funding to pay for more office space, extra computers, more stock and so on.
- Increased staff. Your abilities as a manager of people will be severely stretched as you start to increase the number of staff. You will have to learn new skills of delegation, dispute resolution and motivation.
- Where’s all my cash gone? Growing businesses can often experience rapid increases in sales and profit, but show a reduction in cash generated. At its worst, this reduction in cash flow can lead to insolvency and business failure.
- Extra stress. There is so much more to do! More personnel issues, more poorly paying customers, more crashing computers – they all add up to more stress.
- More bureaucracy. As the business grows, so does the pile of paperwork and you may need to invest more of your scarce cash in bigger and better systems in order to deal with it.
If you relish the challenge of all of the above, then go for it. But if you’re wondering whether or not you can face it, don’t worry. There’s absolutely nothing wrong with continuing to be a successful small business.
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