When new businesses start up it is often a dream to build very quickly into a "money-making machine".
However, reality can be very different and dreams can fall apart just as rapidly.
If your business is fairly new, be wary of taking on a "big deal" that would turn your start-up into a multi-million pound operation.
Why?
Because you're not ready!
Or at least, you're very unlikely to be.
The most successful, robust and long-lasting businesses are built on sound management and sound processes. Could you really handle a multiplication of your business by, say, a hundred times in just a few weeks?
The likelihood is that you will take the deal on, and despite all good intentions, fail to put in place processes or staff to handle the new work. The result could be a disaster, and it would not be stretching a point to say that it could mean the end of your business.
Don't go too fast. Grow steadily and always be sure you can manage what you take on.
I don't know about anyone else (and I have to admit, I don't have much of a business brain) but I'd imagine that growing too quickly is a lot more dangerous than not growing at all. I think I'd find it easier to come up with ideas to kick-start growth but it must be near on impossible to rein in a business that's spiralling out of control.
ReplyDeleteGrowth is fine, but only if it's in proportion and you can handle the growth. As you say, turning down a massive contract might seem like lunacy but it's not going to do your reputation any good if you fail miserbaly. That client will never trust you again and they'll likely tell others not to trust you either.
The company I work for at the moment has grown quite quickly but I've never felt that things were moving too fast. A lot of new procedures are now in place that we didn't need before, we had to look into ERP software instead of doing the accounts on spreadsheets, the internal training processes became more rigorous, so things have changed. And you often do need to change in response to growth. The small business feel is nice but there'll often come a point where you have to let that go a little.