Business Growth Vs. Stability: How To Find The Right Balance
There are a lot of tough elements when it comes to running a business. Even if you achieve success, there are no guarantees that it’ll be an easy ride. Now, you’re gaining in popularity, and you need to find a way to manage it. If you ride the wave of success for too long, you could put the business in danger. Similarly, if you stagnate and refuse to develop further, you might fall behind the competition. Let’s explore this a little more.
How To Manage Growth
When you first start your business, your goal is to achieve success by any means possible. With the right strategy in place, you’ll have a chance at gaining that success. In time, your business will need to grow in order to sustain itself and deal with the ever-increasing demand. Firstly, this means hiring employees. It’s important to ensure you hire the right type of people that can take the business forward into the future.
You also need to consider your current premises. Are you equipped for the demands of the next few years? Will you run into a situation where your growth will be stifled due to the building/s you’re working out of?
Of course, the danger of growth is that it’s easy to go overboard. Developing new product lines and taking on too many clients at once can lead to overworked staff and a disorganized business plan. The key is finding that balance, and that’s easier said than done. Hampton Creek’s Josh Tetrick commented that “if you’re doing too much and you’re stretched too thin, you’re not going to be good.” You can read the Hampton Creek interview here. As you can see, it’s important to recognize when you’re growing at an alarming rate.
How To Manage Stability
So, if you’ve determined that you’re growing too fast, stability must set in. There are a lot of advantages to business stability. For starters, it will allow the entire business to get used to a way of working. This means your employees will grow more comfortable with the operations of the business, rather than being pushed to learn more. Customers and clients will also be given a chance to get acquainted with your regular offerings. This means they will be able to develop loyalty that can be lost with rapid growth.
Stability can also provide advantages in that it allows you to think ahead to the future. Use this opportunity to develop extensive plans so that when you’re looking to pursue growth, you’ll be ready for it.
The danger with stability is that you aren’t developing as a company. If a big client pulls out of the deal, or the competition finds a way to out-do your offerings, you’ll fall behind. It’s going to take a long time to catch-up to them due to your period of stagnation. This doesn’t mean stability is a bad thing, but don’t rest on your laurels. Use this period of stability to plan ahead and develop a strategy of growth to utilize in the future.