Empire building is not for everyone. There is a saying in business that says”If you’re not growing, you’re dying!” Quite frankly it’s a load of crap!
I’m not sure of the origin of this statement, but no doubt it was created by someone who had read far too many books on empire building. Running a business, any business, is hard work and running a much larger business, is that much harder.
As with many things in our consumerism driven society, big is suppose to be better, but that’s not always the case in business ownership. Consider for a moment, if you, will the challenges of continually striving to push your business to the next level.
1. Cash Flow
Unless you have a high gross margin business that affords you a plump bank account, the bigger your company, the bigger the bills and the greater the demand will be placed on your cash flow. More employees equal greater payroll expenses, etc.
This won’t be a problem if everyone telecommutes or lives offshore, but that’s rarely the case. Continually growing businesses will be faced with finding and outfitting physical space. It sounds exciting, but in reality it can be quite stressful and expensive.
More employees beget more employees. The larger you grow, the greater number of supervisors/managers you’ll require to oversee and train the new recruits.
The bigger your enterprise, the more you have to ensure that you not only maintain your service levels but you’ll be faced with the daily pressure of growing your business through new client acquisition.
If you feel your working too hard now, building an empire is going to consume a far greater portion of whatever free time you have left.
Believe me, I’m not against trying to build an empire, I tried to and found out it wasn’t for me. I found I was much more satisfied and enjoyed a much smaller business.
Just make sure it’s what you want to do and not something you feel you should do.
Define your own success!
Copyright © Greg Weatherdon 2011
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