Whenever an entrepreneur starts a business, one of our main goals is to grow our business to a large company. This is a good goal for you to have. Just make sure that you are not trying to grow too fast. Trying to grow too fast can cause you more problems than you bargain for.
When I first started my publishing company, I thought I had my plan all laid out. I wanted to publish books that I had written, a magazine and also books written by other authors. I figured this way I would be able to grow my business at a quicker rate.
So what I did was rent out an office space and filled it up with furniture, office equipment and supplies. This was definitely not a good plan. The overhead became too much and the clients that came to me to get their books published did not want to invest the money into their project. So I spent many hours in my office giving away free information that I should have been charging a consultation fee for. The level of activity of the business I envisioned and planned for in my head was not happening, and I was losing money fast.
I realized that I tried to grow my business too fast! I was too focused on the outside trimmings of a business — e.g. having an office to announce to the world that I am indeed in business. Renting an office out and trying to do too many things at once would not have been a problem if I had the resources to actually do them. But I had limited funds, which I spent in renting an office instead of solidifying my business model, marketing the business and finding paying clients. I definitely chewed more than I could handle.
Now I had to do decide if I wanted to publish for other people and the answer is no I don’t. But I will consult with them about publishing their book and what to do next. I have also written a book titled “The ABC’s Of Self-Publishing. This way if people don’t want to pay for a consultation they can buy the book.
RELATED: Why Build Your Business Slowly
The next thing I did was close my office and move my business back into my house. This cut down my overhead costs and made me save money. I also get tax write offs for having a home based business. The money that I use to spend on rent and phone will now go towards marketing. I have decided to postpone the magazine until I have seen substantial growth in the business. My new plan is working out much better.
So if your business is struggling because you made some bad decisions because you want to grow too fast, just take a step back and rethink your plan and also rewrite your plan. This will help you to reorganize your business to position it for growth at a rate that you can handle.
I hope that this information was of some help to you.
- Book: The Last Chance Millionaire
- How to Self-Publish Your Books
- How to Raise Money to Finance a Franchise
- Pros and Cons of Financing a Business
- What Qualifies for a Home Office Tax Deduction?