Growth is good, but growing too quickly is dangerous.
When you grow too fast, you risk running out of cash because you have had to pay too many suppliers as a result of your expansion.
Rapid growth usually means rapid consumption of cash.
When you spend money quickly, you can’t be sure you are spending it wisely.
The problem with rapid growth is that your staff increases, your salary bill increases as a result, advertising costs increases because you need to market new sites.
These expenses are incurred and should be paid for before any increase in revenue from the big push are realised.
What if you buy too much of the wrong stock or hire too many members of staff who are not up to the job?
Or what happens if your company is caught completely unaware by the public’s response to an advertising campaign and unable to fulfill orders, answer enquiries and generally satisfy demand?
Growing your business too quickly is like building a tall tower as quickly as bricks are available, without letting the bricks and cement to dry up.
The taller the building goes, it becomes more unstable and the more prone it will be to collapse.
To grow your business, put efficient and robust structures in place, this process takes time.
Be patient, grow your business slowly, step by step.
Let the bricks and cement dry up before you add another floor.
At Lora Centre for Innovation and Entrepreneurship we run a 5 months accredited entrepreneurship programme where we discuss these issues with our entrepreneurs. Registration for the next cohort of entrepreneurs is open.
You may apply online now. We start on Saturday, 13 June at 0900. The sessions are online.