I work with startups and businesses which are trying to scale up, hence, soon or later, the question of ‘Growth’ arrives.
When do we begin to scale up? How do we grow? What is the best way to grow? How much growth in manageable? How to manage during growth?
But every now and then, the most important question arrives. Do we need to grow?
Due to the success of tech startups and their ability to scale up, it has become a false assumption that every business must grow and if it does not grow, it must be doing something wrong with it!
Nothing could be farther from the truth. In fact, growth is a very personal question for every entrepreneur. Growth brings increased income, but along with that, it brings a new set of troubles as well. A greater demand on the entrepreneur’s time, greater management challenges, etc. From the point of view of an investor, growth means more returns on investment (or at least a higher valuation! Not all growth is good!) and hence they always prefer growth but from the perspective of an entrepreneur, it is up to the entrepreneur to set growth targets.
If, as an entrepreneur, one is satisfied with being able to meet his/her family demands and afford a good lifestyle, there is no need to grow any further. Any further growth will probably rob the entrepreneur of the extra time that he/she has at present.
There are those who open a grocery store in a neighbourhood and are satisfied with the income that they are able to generate from it. Then there are those who need to come up with the next big dotcom sensation; the next Million dollar App or a nation-wide yogurt chain. Each of them are right in their own place and addressing their respective needs.
The entrepreneur should know his/her appetite for growth. Knowing this allows them to plan accordingly and prepare for what is to come.