3. You’ll Widen Your Professional Network
Every business owner has a professional network, whether it’s within the local community or through a specific industry. Business development means an introduction into a new network, where you’ll meet professionals with similar concerns and observations. A wider network could also bring professional opportunities, as these new colleagues introduce you to others within their circles.
4. You’ll Grow as an Entrepreneur
Entrepreneurship is a career, opening great opportunities for professionals. As you scale, you’ll learn valuable lessons that you’ll learn from and can apply to future efforts. Whether your business thrives or not, those lessons will help you become a better leader and entrepreneur in the long run.
5. Growth Means Increased Visibility
The dream of many business owners is an acquisition by a much larger corporation. As you find a way to grow your business, it will be more visible, attracting positive attention that could lead to lucrative partnerships, as well as the notice of some of the biggest brands on the market.
While scalable growth is a goal for most businesses, some entrepreneurs and their businesses just aren’t prepared to make the leap. Listed below are a few reasons why scaling might not be the right choice for your business at the present time.
The Cons of Scaling
1. You’ll Work Longer Hours
If, like many entrepreneurs, you struggle to achieve work-life balance, growth could add to that challenge. The bigger your business gets, the longer hours you’ll be forced to put in, even if you hire an entire team to help.
2. Growth Takes Time
From the start, you’ve put time and energy into growing your business. When you scale, you’ll need to put in a similar effort to succeed. This won’t happen overnight, so you’ll need to wait patiently to see results from all that hard work.
3. You’ll Alienate Existing Customers
As you turn your attention to attracting new business, you may have little time for your loyal customers, who have grown accustomed to a certain level of service. If you’re offering a new product line, they may be afraid that the products they love will be lost as a result.
4. Your Current Resources Aren’t Sufficient
The current systems you have in place are designed to support your business as it is now. Your fulfillment processes, software and human resources procedures might not be sufficient for a larger organization. You may need to invest in different software and systems to support your growth.
5. Failure Could Break the Bank
The biggest risk a business faces when scaling is that it will break the entire business. If your expenses outweigh any new income you’re bringing in, your original business will be required to pay the bill. Some businesses can’t handle this added expense. Without careful business development planning, you may find that too much growth too fast will be more than your budget can handle.
To successfully scale, find a way to grow your business that won’t stretch you beyond your existing resources. Entrepreneurs should always be aware of the risks associated with scaling a small business, so they don’t end up on a path to failure. For more tips on growing your business, see our article on the eight things you must do before scaling a business.