Growth is great but it produces complexity. When your business is small you have a small number of functions. But as it grows you have need for more and specialized functions… from HR to product development to financial reporting to more managers, more staff, more suppliers and
on and on.
Every small business will eventually hit this critical point of complexity. The rules change and what worked before won’t work forever.
Verne Harnish quantified it. In his book, Scaling Up, he says the rule of thumb is that when growth doubles, complexity increases 12 times! So that means that growing from 3 to 4 employees produces a 33% increase in personnel but a 400% increase in complexity!
Click here to read one business owner’s story about how he overcame the complexity bottleneck as well as a revenue plateau (and in under 5 years doubled his revenue). Also get our
advice about how to deal with this explosion of complexity and ensure your capacity increases as your complexity increases.
Wishing you inspired results, Certified Business Coach Roger Engelau and the Team of Inspire Results Business Coaches
P.S. Click here to hear our founder talk about how your small business could benefit from business coaching.
P.S.S. Listen in (or participate in) Inspire Results Business Coaching’s Friday 9am webinar, “Back to Business Roundtable” where we discuss this topic each week. Email Kena for an invitation.
Inspire Results Business Coaching I 6521 E. Rolling Valley Ct. Mooresville, IN 46158