Are you avoiding growth by chance?

Unwanted growth can sneak up on you and play havoc with your business.

 

 

Growth by chance can deplete stocks and leave good customers stranded.

There are many reasons why a business may achieve growth by chance rather than remain the same size. Businesses which grow benefit from the economies of scale which eventually lead to a greater profit.

Some owners can unexpectedly become obsessed with maximising their profit to achieve some unrelated objective and this could involve some unexpected growth.

When one of your competitors goes out of business and you are able to buy the assets, you could be propelled into the growth stage, particularly if the assets provide increased capacity.

Some business owners receive an inheritance out of the blue, or a lottery win and immediately invest it in their business to obtain growth. Unfortunately, this usually turns into uncontrolled growth which can lead to their eventual demise.

 

“Don’t judge each day by the harvest you reap but by the seeds you plant”. Robert Louis Stevenson.

 

Unexpected growth in a community or target market can automatically fuel growth. This demand may have also been caused by movement in the economic business cycle.

The products you have been working on for years could suddenly come into vogue and you need to unexpectedly address the demand. If you simply increase an existing product or service range, it can automatically cause the business to grow, if other lines are not dropped.

Setting objectives to achieve economies of scale by spreading fixed costs, giving greater technical efficiency and allowing for bulk buying can also fuel growth before you realise it.

Many strive for optimal levels of productivity and profitability and in the process create automatic growth along with the security and stability they are looking for.

 

 

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Personal Experience:

Power and respect are desired by almost everyone and thus many business owners aim to achieve this when their ego comes into play, or they want to display leadership in their community or industry.

Larger businesses can exert a lot of power and influence on people and markets, whereas some businesses simply become power hungry.

Sometimes a business suddenly wants or is cajoled into expanding the business to involve additional family members or close friends.  Where there close ties with suppliers or franchisors, a business can be cajoled into growing faster than they want.

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