Rate of Growth

Usually the answer to the question, “How quickly do you intend to grow your business?” is “As fast as possible!”

The question does not make much sense at first. Once we consider the implications, the picture gains clarity. The growth rate of my business is an intentional decision. It’s not based on cash pressure or predicted profit, although this certainly plays a role. It’s based on sustainability.

A rising tide raises all boats. It’s when the tide draws back that we see who has been swimming naked. Growing quickly is not always a sign of healthy business fundamentals. It’s when markets contract and economies or industries are under pressure that the true picture emerges.

Creating a business strategy on the premise that the current favourable conditions will last indefinitely is a guarantee of failure. Rather build more slowly, but make sure the foundations are solid.

The difference between cheap and expensive woods is its density.

Dense wood grows slowly.

Isaac Smith

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s