Businesses all over the world have a false thing going. It is rumored that you simply have to grow big. You got to have over 9000 employees and be present everywhere. Some businesses are indeed thirsty to have their footprints all over the place. Is this what every aspiring business needs? No. It doesn’t need to grow, it needs to be profitable! Both aren’t the same.

How does one ensure that the business grows profitable and not just BIG?

1.    If you can afford it, don’t grow : There are numerous advantages that accrue to small companies like the ease in implementing decisions; flexibility; ease of management and the ‘ paranoid’ mentality that you don’t see in big companies. Not taking action can cost a lot and the big companies keep paying this cost over and over again. Small companies are better off when it comes to this and hence you will do better to remain small and just grow rich.

2.    Focus on Profitability, not growth: What is important is how much money you seem to be making as compared to how big you are. There really isn’t any point in growing big if you can’t sustain that growth. Growth in business happens organically—not because you want it to grow.

3.    Cut the fat loose, especially when growing: The functions in the business will simply take more weight as the business seems to be growing. While that is great news, you got to be looking to cut all the loose or excess fat here. Keeping your department sizes small and active is certainly possible by employing some of the modern ways doing businesses.

4.    Use technology: We don’t have robots yet, but we do have technology that can replace humans. Here’s the thing about machines – they are easy to acquire; easy to maintained; once purchased or implemented, they are yours and they don’t quit on you. Humans lose the game. So fire as many of them as you can.

5.    If you had to grow, grow strategically: Decide how you want your growth to be – up or lateral? Cut out the hierarchy; decentralize decisions; make each department another business – like a group of consulting firms – within your own company.  The marketing division becomes a marketing consulting firm led by its own boss – you get the picture, don’t you? This kind of growth gives your company the size and also the incredible flexibility that can be made possible.

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