What Type of Growth Should Your Business Pursue?
When business owners come to me, it’s usually for one reason: They want to grow.
That’s great, because we help companies do that.
But before we get down the path of planning world domination, there’s more I need to know.
How big do you want to grow?
Why?
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I’ve found that there are 3 types of business owners out there:
Type 1: Growth-hungry. These are the entrepreneurs who tend to be lionized: the people who build empires. Growth is a need; and it goes well beyond the money. They’re usually hyper competitive and want to win.
Type 2: Lifestyle-focused. These are the entrepreneurs who want to grow enough to get what they need from their business. Lifestyle businesses get a bad rap, but guess what: the literal definition is to “support a founder’s lifestyle.” Does that sound like enough for you? For plenty of people, it does.
Type 3: Growth-uncertain. Many, many entrepreneurs I know fall into this camp. At heart, they might be type 2, but they’ve been influenced to believe they are type 1. Maybe they are type 1 but haven’t fully embraced it yet. They’re often caught up in the hype and perceived glamour of growth…but it may not be what they truly want. Above all, they haven’t necessarily given it much thought.
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So, which type are you? And why does it matter?
Because the more you want to grow, the more you have to be willing to put into the business. I’m not talking about a direct relationship between your time, your sweat, and the company’s growth. You can grow wisely. You can delegate well. You can hire the right people.
But…growth does have a price.
To be growth-hungry, you have to tolerate risk. You have to be willing to put years into the business before you see the rewards you want. Money, time—you’ll have to sacrifice them in the short term.
Aggressive growth isn’t something you should embark on because you think you have to.
If you could do it another way, there’s a good chance you should.
But I know there are many, many of us out there who can’t.
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So it all comes back to goals.
You can be a growth-hungry entrepreneur. You can be a lifestyle-focused entrepreneur.
The only thing I don’t recommend is being a growth-uncertain entrepreneur—at least not for very long.
What is your goal with your business? And WHY is that your goal?
Figure out if growing your business is the thing you’re willing to bleed for.
How much? It all depends on what you want to achieve.
I can’t stress this enough. There is no right answer. There is only what’s right for you.
Figure that out first. Because the planning for who you want to be 5 years from now? It starts today.
