Growing big or staying small?

I have some entrepreneuring friends who have been successful with their ventures. With healthy cash flow and promising business models, they asked for my opinions on what’s next.

For some people reinvesting for growth is a clear choice but for young entrepreneur like my friends, it’s not always the best choice.

As you expand, you will become more and more CEO-ish. I mean, yes, you are a CEO before, but in a small company, you probably do a lot of the job yourself. You can afford to have finger in every pie. As you grow bigger, there is a rational bound that keeps you to more important tasks, which are usually managerial tasks. You spend less time doing the real job, which is most probably your passion.

The bigger your company is, less personal it would be. This is good or bad depends on how you see it. In a small company, keeping in touch with everyone is easy. A meeting might hold the whole work force. You see their face everyday. Decision making doesn’t take much time as there aren’t a lot of levels in command. This is not the case in big company. You will rely on senior officers to give you  inputs on different departments. You probably won’t even see other employees’ faces.

With more people in a company, you will face a lot of influence, either bad or good, especially from seniors who are probably older than you.  It will be more difficult to make decision, introduce something new, venture into a new business model or having fun in the office. You have to act serious to gain their respect. There will be politics too so you have to know when people are trying to win over you just to get you on their side, for example.

Of course, there are a lot of good reason to grow large. And some of the companies manage to keep the fun in the workplace, (i.e. Google, Facebook). What I mention above are just some points that some might overlook in the excitement of growing his/her company.

As for my friends cases, I actually advised them to grow their business, but also to be careful not to lose the reasons of why they started a company.

As for me, while I have had the opportunity to run a business cycle, make difficult and risky decision, make real profit, lose real money and some other things, I haven’t had the opportunity to run my own company yet as I feel there are still a lot to learn by working in other companies. Some might think that experiencing failures first hand is a good teacher. I think that’s true but if you don’t learn anything from it, it might be as well an excuse for such failure.

  1. #1 by risa on June 30, 2010 - 1:43 pm

    hey would like to ask you some questions. but looks like the email address thats stated on your web is invalid..

  2. #2 by SANDY on July 13, 2010 - 4:58 pm

    Salam to you,
    I enjoy read the article, but I dont have enough time to put any comment. I am working in a international company as for your info. I think staying small is a humble choice, meaning is less risky. It give you time to learn about your life more. my 2 cent opinion.

  3. #3 by neil on August 9, 2010 - 11:07 am

    hi, been following your blog quite a while now. really enjoying your article.

    keep it up.

    neil gomes

  4. #4 by kampunginvestor on August 10, 2010 - 4:14 pm

    Most people loose their reasonings when the business become too big or successful. Partners will start to eat up the company until dry.

    “Some might think that experiencing failures first hand is a good teacher. I think that’s true but if you don’t learn anything from it, it might be as well an excuse for such failure.”

    I like this statements best. Really do! Learn from mistakes and failures. It will bring you glory when you stand up and pick yourself up after you fall down.

  5. #5 by Candida Arimoto on November 9, 2010 - 2:53 am

    high account you lock up

  6. #6 by Rae Reister on November 13, 2010 - 8:11 pm

    I believe I may ought to take a break from my delicious remarks relevant to.

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