Are You Too Big To Fail Or Too Small To Grow?

Are You Too Big To Fail Or Too Small To Grow?

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Too Big to Fail?

This is an attitude of the complacent entrepreneur. Business success increases the temptation to keep stretching growth expectations, sometimes with dire consequences. Size can bring a false sense of invincibility and a risky ‘first mover’ instinct.

One decision to scale up brings operational complexity and lower stress tolerances for cash. Before that diversification, acquisition, new factory or geographical expansion, ask yourself whether you are driven by the ‘too big to fail’ syndrome.

Too Small to Grow?

Cautious entrepreneurs perceive ‘small’ as a safe haven. As a result their business never develops enough products, services, industry and sector penetration, and geographical footprint.

Size is not the springboard for growth; your strategic shape matters more. It is about having strengths in the right areas, starting with your unique value proposition, business model and its scalability.

Find a Balance

Bigger businesses must balance scaling up with long-term sustainability. Small, growing businesses need to challenge size.

Related: 3 Unconventional Tips for Upping your Business Game

Lizwe Nkala
Lizwe Nkala is an influential corporate strategist working at executive and board levels of large corporations. He is the MD of Flamingo Moon Consulting and a founding partner of the Strategic Thinking Institute, where he coaches executives and presents tailored strategic thinking seminars and webinars, and provides strategic thinking tools and templates on a subscription basis for corporate clients. For more, visit www.flamingomoon.co.za