CPA for Small Business serves clients in a wide range of industries. Across all industries, one of the primary topics of discussion is whether to try and make it big (home run) or strive for incremental growth (singles).
I owned an entrepreneurial logistic company in the mid-1990’s. The goal I had with this company was to grow as fast as I could with the resources I had at my disposal. Whenever I had enough cash hire a new employee and set them up with a desk and computer, I did.
There were also four or five times I “bet the company” during the four years I owned this firm. By betting the company, I mean that I took most of the cash reserves I had built up and invested them in marketing in an effort to either grow or turn the company around during periods of slow sales. The last time I bet the firm I lost and my logistics firm eventually failed.
Over the years, I’ve come to see that it is far better to focus on singles than swinging for the fence every time you step up to the plate. By basing your business on incremental growth, you are more likely to have a strong foundation of customers and sales. With a solid foundation, home runs then become the icing on the cake as opposed to a means of survival.
I wonder what you think about this.