As a small business owner, I’ve recently weighed the options of expanding. The demand is there. The clientele is there. More work means more money, right?
In talking to a contractor about my plans for expansion, he made a comment that really resonated with me after I asked him why he stopped taking on so many commercial construction jobs.
“Bigger isn’t always better,” he said. “More contracts meant I had to hire more employees which, in turn, meant I had more salaries and insurance to pay for. I spent more time on the jobsite and less time with my family. At the end of year, the profitability really didn’t outweigh the responsibility. I can make just as much profit with two employees in a year’s time as I can with 22.”
It made sense. He took on fewer jobs in a year’s time than he had in the past, but with fewer people to distribute the money between, he still turned relatively the same profit.
Businesses aren’t one size fits all. There are advantages of being small and staying that way. In the business world, bigger really isn’t always better. As long as you do what you do, only better than before you’re sure to be successful no matter what size you are!