For the motivated business exec, stagnating is not an option. Companies owners motivated toward growth will find a number of hurdles and difficulties in growing the business beyond 10 to 15 employees. Unlike some companies focused on growth at all costs, most small businesses lack the luxury of burning through capital just to attract market share and great talent. The “grow at all costs” mentality ignores sustainability, business longevity and true staying power. Those working to build a true legacy would avoid the shortsightedness of flash-in-the-pan growth.
Balancing between growth desires and constraints is one of the most practical ways to look at the decision process. In many ways, deciding on a growth strategy is the trifecta of the mutually inclusive issues of cost, quality and speed. You’ll always be limited by one of the three and if you would like to increase one leg of the stool, the other must decrease.
Overcoming Growth Limitations
There are always limitations to business growth. Whether such limitations are based on physical or human capital, time constraints or knowledge constraints, the results are the same you are limited in the amount that can be done and the speed with which it can be accomplished. Regardless of the business type, companies will always be restrained for massive growth. Those whose businesses throw off enough cash for reinvestment, for instance, may not be limited by capital, but they will most certainly be limited by time constraints for go-to market strategies, thus requiring a rapid acquisition of talent, know-how and resources able to integrate down a market line or into some heretofore untapped business vertical. The following is helpful in viewing growth strategies in light of the organic/acquisition growth framework.
Organic Growth Limitations