Wednesday, August 20, 2014

The Benefit of Keeping Your Business Small

When I first started out as a business owner in the landscape field (I provided services and sales) my goal was to build the business as large as I could.

The problem was, for the business to scale, I would need more trucks, trailers, mowers, more equipment, more inventory, more storage, more repairman, and more administrative and legal help.  As the business grew, the growth would bring more problems.  To solve the problems I would need to spend more money.  Then I would need to generate more work, more contracts, and more sales to cover the expansion.

It was like getting on a hamster cage.

The same happens in churches too.

Stress can come from all sorts of places, but the bigger your business (organization) gets, the more anxiety it seems to bring.  You have more pressure to generate more money to make sure all the expenses are covered.  You have the stress of managing workers, staff, and employees.  Then there is the stress of dealing with the public.
  • Less Risk – A smaller business has less risk.  For instance, bad weather that might shut your business down for two weeks is easier to survive if it’s just you and/or one other person.  But it’s a different story if you have numerous employees, departments, and accounts.
  • More Freedom – In a small business you have more freedom to try different ideas… freedom to work fewer hours… freedom to spend more time with family.  Maybe you’d like to coach your son’s soccer team, volunteer at church, or take your child to swimming lessons in the middle of the day.  It’s an incredible thing to have the freedom to spend time with your family and children as they are growing up.  Structuring your life and business with this freedom built-in is something you’ll never regret in the long term.
In light of these (and many more) benefits of keeping a business small, I eventually began to scale back, keeping it as a sole proprietorship and keeping it “right sized.”

Glad I did that.

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