You are probably reading and re-reading the title of this particular article and asking yourself whether the author has gone completely mad. How can growth be bad? Isn’t it the goal of every business (including home businesses) to grow and succeed as quickly as possible? Well, there is such a thing as growth that happens too fast and which may actually spell doom for the business in question. But, what exactly are the problems with this and why are they so dangerous for a home business and its owner, i.e. you?
Compromising the Quality
It does not matter what kind of a home business you own – whether you provide a service or a product that people have grown accustomed to; the consequences of a growth that is too rapid will be the same – the quality of your service or product will most likely suffer. Home businesses have a very limited output thanks to their nature. In the vast majority of cases, they are one-person operations, perhaps with a bit of help from a friend or an employee or two.
If the orders start increasing in volume and if more and more people come looking for your service, sooner or later you will not be able to keep up. You will start cutting corners and hoping that no one notices. The problem with small home businesses is that people will notice. It is your attention to detail and your dedication to perfection that attracted the customers. You cannot compromise this.
Exhaustion Will Set In
Of course, at first, you will try to do everything in your power to keep up with the increased volume of work. If you have some help, they will do the same. Before you know it, instead of 6 or 8-hour days, you will start working 12 hours every day. Then 13. Then 14. You get the picture. Soon enough, you will start losing sleep and you will start feeling exhausted. This is never a good thing, especially if your entire business depends on you being on top of your game 24/7. You will simply not be able to make it. Once again, the quality of your product/service will suffer.
You Will Hire in a Hurry
The next thing that will happen is that you will have to hire new employees in order to be able to handle the increasing volume of work. The problem here is not with hiring new people, but with hiring them in a hurry. As any recruitment expert will tell you, this is a bad idea. For one, you might be forced to hire someone whose skillset is not developed enough. As a result, you will once again see the drop in quality.
Another risk here is that you will hire someone who might have all the skills but who will not be a good fit. The atmosphere will suffer and you will start hating your home business. The whole point of your home business was so you can enjoy working. With incompatible employees this is impossible.
You Will Need A Lot More Money
For a business to expand, it takes a lot of money. This is true for home businesses as well. In fact, more likely than not, your home business will need to become more than just a home business if it is to grow uninhibited. You cannot really expect five new employees to come to your home and work in cramped quarters, sharing their workspace with your family and pets. More likely than not, you will have to rent commercial space for your new business which has long stopped being home business and turned into a bona fide small business.
So far, this means spending money on new space and on new employees. There are also the legal fees and tax considerations to be made. In short, before you know it, your growing business will start hemorrhaging money everywhere you turn. And in most cases, the new customers/clients and the increased profits will not be enough to finance this expansion. You will need to take a risk and take out a loan.
If you have played your cards right and if your analysis has been sound, you will be able to pay off your loans and in some time, you might actually come out on top. That being said, there is always a chance that something will go wrong and that your business will take a hit. This can happen to any business, including yours. All of a sudden, the profits have gone down but the debts are still there. This is the perfect formula for your business failing.
You Will Lose Your Passion
As all of the aforementioned starts to pile on you, there will come a time when you will start losing your passion. For most home businesses, it was the passion that inspired their formation and it is a sad day when this passion disappears. Quite simply put, you will turn into a business just like any other, concerned only with profits, deadlines, debts, expenses, margins and everything else that can turn any business into nothing more than an assembly line.
Once this happens, there is almost no way to turn back. Not only will you stop hating your business and your situation, but the quality will suffer as well. Your ideas and the zest for what you do were the biggest selling points of your home business. Now that they are gone, your home business will lose everything that made it special.
And this is a very sad time.
Instead of rushing it and looking only to grow your home business, you need to stop from time to time, stand back and survey your situation. Sometimes it might actually be a better idea to slow down, keep the status quo and look to improve the quality and not the volume of your business.
Believe it or not, this is something many business advice experts agree on. Sometimes, there is really such a thing as a home business that is growing too fast.
Keep this in mind.