Small Businesses Should Grow Slowly

USA Today has an interesting article on why it's not always the best idea to rapidly grow your business. Many small businesses make the mistake of thinking that a sudden increase in revenue will last forever. Whether you're just opening an LLC or forming a corporation or if you've been in business for a long time, there are certain factors that can cause a spike in sales. The USA Today article talks about a small candy making company who had a small profile in Oprah's O Magazine, this increased their call volume from about 15 a day to 100 a day, while the small business quickly resolved things by hiring interns, many businesses in similar situations are quick to hire a lot of employees and buy new equipment to meet up with their new demands. The problem with growing too quickly is that you're never sure if the demands are going to be consistent. It's important to pace yourself while growing your business, overwhelming yourself with too much will most likely result in a service and product that not of the highest quality. If you can't meet the demand, don't be afraid to tell your clients that you're sold out, or you cannot accommodate them, most people will understand.

You can also use your company’s popularity as an advantage, for example, if you run a bake shop, and everyone loves your butter toffee cupcakes, you might often sell out, but you can also offer your clients the ability to pre-order a dozen or more cupcakes, giving you more time to fill the orders. This creates a good buzz, and people want to buy your product so much that they're willing to come early to get it. If you're providing a service or product that is of quality, a lot of people don't mind waiting, and they will still come back. You do not need to feel the pressure to supply all the demand at once, you can start slowly by maybe making an extra dozen, and when you have that system worked out, you can maybe take the product that sales the least and replace it with the product that's selling the most. There are always creative ways to provide more to your clients, and in small business, there's not always a black and white picture of what's right and what's wrong. Do the best you can, and take your time growing your business. Good Luck!