Stay Small or Grow?

Business may be booming and unexpected and new opportunities may be knocking at your door, but beware of growing too quickly or of taking on more than you can handle.

In order to successfully navigate this lucrative dilemma, look at the issues from both an analytical and an emotional standpoint

First, you need to take a hard look at what it will cost you to build the business. Do a financial analysis: What will your monthly cash-flow needs be if you put resources behind growth and pursue these newfound opportunities? What would your revenues be in the growth scenario? And don't forget about your salary: Will there be enough left over to pay yourself a salary that meets your personal financial needs? These are all questions you should answer honestly before you decide to grow or stay small.

Next list all the hassle factors associated with growing the business. Include things like managing employees, setting a good example as the boss, payroll taxes, office management and OSHA restrictions — whatever is appropriate to your case.

Now for the emotional side: Divide a fresh piece of paper into two columns — one side lists all the negative aspects of expansion and the other side lists the positive ones. On the left side write down all the personal, psychological, and emotional reasons why you don't want to grow the business. Include items such as added stress, less vacation, less time with the kids, and the inability to pursue other interests. On the right side put ideas such as prestige, extra purchasing power, and more travel opportunities.

After you complete these analyses, review your findings and sleep on it for a couple of nights. The right answer will emerge.