Important read for all entrepreneurs and small business owners. How fast is too fast to grow a business and why too fast threatens or destroys the business. Leadership, operations and management.
Excerpt: Allen Printing had fallen into a familiar trap: unsustainable growth. Positive business conditions coupled with relatively easy credit can entice firms to chase high growth. However, high growth can easily overwhelm the internal controls of a small enterprise. Heffington, working with Steve Curnutte, a restructuring advisor, realized that as new orders poured in, it became difficult to establish the true cost of fulfilling them. And, because credit was readily available to cover the growing need for working capital, it was easy to ignore the sizable number of unprofitable and late paying customers. Whenever an economy is heating up–even now, as it does so haltingly–the temptation to focus solely on growth can seem irresistible. But, as Heffington learned, the tables can turn viciously when economic conditions deteriorate.
So what can an entrepreneur do?
Read full article via Are You Growing Too Fast? – Sandeep Dahiya – Harvard Business Review.