People talk about growing a business as it were an option, a lifestyle choice. It isn’t. It might well feel empowering to ponder an imagined bifurcation in the entrepreneurial path, to consider a couple of jauntily-angled signs that point, on the one side, to frantic scaling and untold wealth and, on the other, to a genial working day that goes on (more or less) forever. Except it doesn’t quite work like that.
Like an adolescent offspring, a young business is a pain; it will keep trying to grow up. Despite your best efforts to hold it back – conscious or otherwise – there’s an inexorable internal dynamic that makes a business, if it’s any good, need to expand. No doubt a smart economist, or maybe just a decent accountant, has a good explanation for this. Whatever. For a business owner it is either a blessing or a curse; for many, in theory it’s the first but in reality it’s the second.
Paradoxically, this unstoppable momentum doesn’t stop a lot of creative businesses staying more or less the same size for years. They grow a little, push up the evolutionary scale for a while, only to settle back down to where they were a year, or eighteen months, ago. Having briefly entered the choppy waters of growth, they beat a retreat back to harbour, to calm water. Only it isn’t calm, back where they came from. It’s just a different kind of chop: too much work; not quite enough revenue; too few hours in the day; too little structure; flimsy processes, management structures and profits.
I worked, briefly, with a business that has gone through this cycle every couple of years since its inception. It has tremendous expertise, a charismatic leader and enthusiastic clients who tend to get on board at the top of the cycle and ended up questioning the quality of outputs, the attention to the subtleties in the brief and the evident chaos in project management. What they experience is the point where the business has the opportunity to push through to the next level of growth but fails to grasp it.
A whole sorry catalogue of causes get blamed for this sort of entrepreneurial Groundhog Day, including – surprise, surprise – our old friend, a lack of investment. The most common culprit, though, is much closer to home; it’s the entrepreneur themselves.
Indeed, the syndrome is so common it defines a key rule of entrepreneurial expansion; a business only grows at the speed with which the MD and directors can increase their personal Management Bandwidth.
The peak, from which these businesses invariably fall back, marks the limit of the leader’s (or leaders’) current management capabilities. Commercially, growth is there for the taking. The vision, goals, confidence and skills to grab it are not.
They need to be acquired, in either sense of the word – learned or purchased – for the cycle to be broken.