Growing too fast…
The heartbreak of premature escalation

Allan R. Goldner

You were sitting in a college classroom, attending a seminar, or squeezed in around a table of gray and white hair, suited individuals, (single or double breasted).  Amid the typical meeting distractions, a central dogma filtered into your subconscious. You heard it, filed it away, and never forgot the creed of all business.  Perhaps it was stated as a follow up to business rule number one: Make a Profit.  But, you know that somewhere in your soul, you believe wholeheartedly that you must carry out the mandate and fulfill your entrepreneurial destiny: Grow your business. It cannot be denied in the face of economic dogma, business models, sages of the ages, and the warnings of Uncle Artie; Business must grow.  

You may wonder why some seemingly successful businesses grow and fail.  It’s clear that your current and proud achievement can be the model for even greater rewards and triumphs.  Your new ventures will protect and secure your financial well being and provide your employees with greater opportunities.  The reasons to go forward are limitless, but be cautioned, it is easy to fall into a trap. The following are some basic tenets for reckless growth.

Some smalls will endeavor to grow for the wrong reasons.  Sometimes, the current situation is rocky, and the belief is that growth will help to augment the existing business.  Alternatively, an opportunity has suddenly arisen and you feel it must be seized.  These can be ambushes waiting to happen.  Advice: Fix your number one first, or you might end up with two broken ones. If you’re having difficulties managing your business, both productively and profitability, then dividing your time taking on additional services or units, etc., not only will not make things easier, but could open more holes in your already leaky boat.  Don’t worry, opportunities will happen along, and as a success you will create your own.

Larger outfits fall into trouble with premature escalation as well.  Yes, there are the shareholders that want to see immediate satisfaction on their investments.  Your Clients or consumers love what you do, and so you take your company on a rapid acceleration.  What happens next is that the Big Bang effect on your outfit leaves you severely undermanned in key management roles and without the proper systems in place to monitor the side effects of the sudden expansion.  Your original quality control is now out of control.  Your cash reserves are depleted and your friendly bankers are no where to be found. The recovery period will be lengthy and very costly. You will not be able to blame the shareholders; you are the one in charge.

Yes, Business must grow, and grow it must.  But, as with every situation in life and business, there is the right time and the right circumstances.  Temper your fierce determination with sage council and impartial experience.  Savor the success of now, just for a moment, then plan and prepare to make the next level of your success even sweeter.