Start Small and Grow

       This is one of the subjects I address in the chapter “Myths About Starting a Business” of my book Business Fits. 

The opportunity to start a small business and grow into a large business might have been viable at one time.  There are always exceptions, but this is basically a thing of the past today. 

A quick look at any downtown business district will verify the changes in retail business.  Franchises and chains are replacing the small independent business owner.  We see all kinds of small businesses closing as chains and franchises take over specific industries.

Today’s consumer demands the selection, price, and attractive image that the chains and franchises offer.  Franchisors have learned this and that’s why they have a minimum investment for new franchisees to market effectively and attract customers.

The opportunity to start small and grow is not realistic for a variety of reasons. The small start-up usually does not have the resources to expand.  The owner often works in the business so they don’t have time to run the business.  Because the owner works in the business, they also don’t have the time or sometimes the talent to develop a good working business system. 

Don’t make the mistake of thinking a fast increase in sales will generate enough profits to finance the growth.  Rapid growth of a business may actually put a company out of business.   I give an example in Business Fits of when I bought a Ford-Mercury dealership and tripled sales in ninety days.

There are still exceptions for specific industries, like the dot-com business of a few years ago.  Just remember, any success story you hear is the exception rather than the rule.

Read more at http://BusinessFits.com