It’s a lot easier for a small company to happily grow into a large one than a large one happily downsizing to a small one. When you’re small you have options – you can stay small or go middle or go big. But once you’re big, getting smaller is almost always out of the question unless you’re forced in that direction. This is the problem when companies grow too fast – they skip right over their options and set themselves up for big or bust.
Justin Jackson
on 24 May 10Growing too fast is almost never a good idea. I live right below the oil sands in Canada. In an economic boom everything get big, really fast: import more workers, build more roads, increase programs. But when oil goes down, the government is stuck maintaining infrastructure that is no longer needed.
I wish we’d stayed small, and grown slowly.
Jason Klug
on 25 May 10A few years ago, one of my clients used to pride themselves on being the “largest real estate office” in the area (and they were, by a large margin).
Bigger isn’t so useful now, though, as they’re stuck with offices and overhead that FAR exceed their needs—an extra weight around their neck in a tight time for their whole industry.
Pwb
on 25 May 10So what’s the answer? Stay small? Or is it possible to grow reasonably?
Deltaplan
on 25 May 10I think that one of the ways to cope with this is to grow without enlarging the size of the company itself.
For example, in our business, we have moved from 3 to 7 people (for us it’s already becoming “big” !), but not by simply hiring more employees : we have structured our business in three separate companies, none of them having more than 3 employees.
Vik
on 25 May 10But what happens if geniunely company is growing and there is lots of work to do …you hire people !!What happens at later point that you are not able to get more work and clients have reduced?Any examples of the companies where it geniuenly did not downsize and cared for the employee?
Apolonio Valdovinos
on 25 May 10If you absolutely have to hire, then you have to hire. But the problem is that more bodies is often the first choice rather than thinking of what you really need.
11 years ago I worked at start up, and we were successful selling and intranet web sites with five people. The implementation cycle and needs took so much effort we expanded too quickly. In one year we were up to 30.
Instead, we should have taken the time to re-evaluate our business model, moved to a hosted version, and minimized our hiring.
I’ve worked for myself now for almost four years. I did it alone with some contract help, and it is now 2 of us. I don’t see us needing to expand for at least one year.
Ｊack
on 26 May 10It is interesting blog! In addition, I come!
This discussion is closed.