| + Share page with friends! |
|---|
Why do people seek 'big breaks'?
It seems success is best handled when growth occurs incrementally based on customer demands. I dont understand why people try and slap together some basic infrastructure then hope they will sign on thousands of clients in a few weeks?! I think this is a flawed way of doing business as it is extremely risky. The prevailing wisdom seems to be to invest huge amounts of venture capital into advertising and then hope people come knocking on the door.
If I had a prospect with a deal that could increase my company's revenue by more than 10% in a month I would tell them NO. My business can not handle more than 10% growth per month. To do so would mean sacrificing the quality to my existing clients and would likely result in poor service to everyone. The result would be a failed business in a few months.
So are businesses that grow more than 10% a month just lucky or doing something right?
The opening of the Internet was a unusual time in that the business space was more or less like a land rush. Folks knew that there was money to be made, but they were not sure where. So the idea was to get in, stake out your territory, then figure out the business over time. Those who waited would have missed out on the customers, so even if they did figure out a business model that worked, they would have nobody left to attract to their site.
It was very much like the tulip market or land in Florida in the 1930's.
Your point is one of the most valuable and "painful" lessons learned by business owners.
Most leaders build their businesses backwards. They run after their company's success without first preparing the operational and leadership infrastructure their company's need to support and sustain long-term growth.
The result is years of stress, aggravation, problems and slow -- or no -- growth.
Not having a strong foundation prevents sustainable growth because as you add new customers you lose older customers. Your company simply cannot supply the service and quality levels needed to accommodate a larger book of business. Disappointed customers turn to your competitors. You end up spinning your wheels. It's exhausting.