It's interesting to watch the ebb and flow of business trends -- children's clothing stores seem to pop up everywhere, tattoo parlors even more so, and now beer breweries.
We won't know if there are too many breweries until one too many breweries opens, right? That last drink which makes you clumsy.
And that will happen.
I've seen it in my own business. There was a time when there was a sports card shop on every corner. Too many comic stores, too many game stores. I actually saw a pog store open, and saw several businesses who seemed to depend on beanie babies. There are two reptile shops in Bend. Really, is there a need for two?
I've also seen over and over again, successful businesses expand and multiply, and then come crashing down.
Hey, I did it myself. Four stores, two in Bend, one in Redmond and one in Sisters. What was I thinking?
McGeary's corollary to the Peter Principle. A business will expand to its level of incompetence.
The article this morning about golfer's not showing up because of the stock market volatility?
You know what? If your business depends on a stable stock market, you're in the wrong business.
My advice nowadays would be to make your business solid, build in a margin of error, and if you've done all that first, then think about expanding. However, if you expand, it probably makes more sense to get really big, instead of slightly larger. You may fail, but at least the payoff if you succeed will be there. If you get only slightly bigger, the workload increases exponentially, and the monetary payoff will be tied up in the expansion.
Can you say the word -- burnout? Can you say the words -- risky finances?
At the same time, you won't be doing those little things that made your business a success in the first place. You won't have time. You'll have to succeed being bigger by doing things differently.
You'll be in an office, instead of on the floor. Meeting lawyers, instead of customers.
It will be a different thing altogether. I know it is the American way. But is that what you really want?
A lot of small business owners open business because they want to be in control, to make their own decisions, and to do things their way.
The bigger you get, the less that is true.
Just saying, watch out what you wish for.
2 days ago