Aspiring entrepreneurs dream of taking their businesses to the next level. They set ambitious goals, aim for success and try to grow their companies as fast as possible. However, many of them make a critical mistake that costs them significantly in two ways. First, it hampers profitability, and second, it impedes the growth of their company. The mistake is trying to grow too fast.
There is a lot of motivation on the internet and in the world these days, and there are many people selling the dream of fast growth. From YouTube videos to influencers, everyone seems to be demonstrating how fast one can grow their business, instilling an unwavering belief in the process. However, while this may be well-intentioned, the downside is that people are building their businesses in unhealthy ways, which is costing them significantly.
The first way it's costing businesses is when entrepreneurs set an unrealistic goal and fail to achieve it. In such a scenario, the business's profit margin takes a significant hit. With high overhead fixed expenses, a high break-even point, and falling short of targets, the profit margin is thin. In contrast, setting lower goals and achieving them is financially more rewarding.
The second way it's costly is that it impacts the growth of businesses in the long run. When entrepreneurs are in a hurry to build their companies too quickly, they tend to cut corners and make mistakes. Doing things the right way takes time, and being in a rush is not conducive to it. Consequently, when things are not done right the first time, entrepreneurs end up doing things twice, ultimately slowing down the business's growth.
The human bias of overestimating how quickly things can happen is another issue. Entrepreneurs tend to think linearly, and building a business is exponential. They overestimate what they can achieve in the short term and underestimate what they can do in the long term. When entrepreneurs are overeager to reach their goals, they try to force things, which ultimately leads to delays in the business's growth.
The best way to grow a business is to develop mastery and build great systems. The focus should be on doing things right rather than rushing to achieve unrealistic goals. Building a business takes time and effort, and entrepreneurs should be willing to invest both. It's okay to slow down and be willing to sacrifice reaching the goal if it means doing things right and achieving mastery.
In conclusion, ambitious entrepreneurs must be mindful of the costly mistake of trying to grow their business too fast. Instead, they should focus on doing things right, building mastery, and developing great systems. They must be willing to invest the time and effort required for the business to grow organically. While the end goal may be important, it should not come at the cost of profitability, growth, and quality of life.