A start-up business expands from the day it is created, but many entrepreneurs eventually get to a point where they are faced with a choice – aggressively pursue growth or purposefully keep the business at a manageable size.
A number of things might lead you to decide to chase aggressive growth:
- You are struggling to keep up with customer demands, it might be necessary to put on extra staff and move to a bigger location.
- The competitive environment in your industry changes – if, for example, a competitor goes out of business – and an ideal opportunity presents itself.
- Changes in technology allow you to increase production or reduce costs in a way that enables you to grow your business quickly.
Of course, wanting to grow and being ready to grow are two very different things. Growth generally requires capital to invest in new equipment and other resources, and the internal processes and systems of the business must be strong enough to cope with more customers.
Cashflow is always a challenge in a growth business, particularly where new investment is required upfront.
It is sensible to seek advice from your accountant, lawyer and mentors before taking the plunge.