More Money, More Problems!

Well, not quite but there is a growth misconception in business. There is a common belief that the bigger you get, the easier things become. That once revenue climbs, stress levels drop. That success automatically leads to smooth sailing. If only that were true.

In reality, growth doesn’t eliminate problems it changes them. And often, it creates new ones where your business can loose its soul, it’s purpose and even it’s most loyal customers. The problems don’t disappear, they evolve. When you’re a small business owner, your challenges are immediate and obvious: keeping the lights on, attracting customers, and managing cash flow. Every sale feels like a victory, and every expense is a careful calculation.

But as the business grows, so do the stakes. Revenue increases, but so do overheads. Your team expands, but so does the complexity of managing people. Suddenly, your biggest concerns aren’t about making sales, they are about scaling efficiently, maintaining company culture, and handling unexpected crises.

Larger businesses face issues that small businesses never encounter:

Cash flow vs. Profitability: A business can be highly profitable but still struggle with cash flow due to delayed payments or high operational costs. How does it affect hospitality? Imagine you’ve spent time trying to attract a corporate market for your function space. This new revenue stream is fantastic, but unlike your table for 2, they look for Purchase Orders, 30 days credit, or maybe they don’t pay on time!

People Problems: Hiring, retention, leadership conflicts, and company culture become ongoing challenges. When you started out, you did 100% of the hiring, maybe now you only 2nd interview senior hires. Can you ensure the same calibre of hire and pass on the same message on your businesses “why” if you are not involved in that process?

Operational Complexity: What worked at 10 employees won’t work at 50 or 100. Systems, processes, and communication need constant refinement, and those systems and processes whilst essential, may remove the personal touch that made your culture tick.

Growth often brings increased scrutiny, legal obligations, and financial reporting responsibilities, but that bores me in my day to day, and I don’t want to bore you with it here as you read a newsletter with a coffee in hand, hopefully taking a break from your own day to day.

Growth Brings Opportunity, But also pressures! I’ve seen businesses reach new heights, only to find that success brings its own kind of stress. More money means more responsibility. Responsibility to employees, customers, investors, and even to the reputation you’ve built. The decisions you make have bigger consequences. And lets not forget competition. When you’re small, you can fly under the radar. When you’re successful, competitors (both old and new) take notice. The fight to stay ahead never really stops.

So, What's the Answer? If growth doesn’t solve all problems, does that mean staying small is the key to happiness? Not necessarily. Growth is a sign of success, but it requires mindset shifts:

Embrace New Challenges: understand that growth means evolving problems, not eliminating them.

Build Resilient Systems: invest in processes and infrastructure that can handle expansion. But remember, build and invest in a way to allow you to keep focusing on what was always important to you when you were a small business: your team and your customers.

Hire for the Future: surround yourself with people who can manage and grow with the business.

Stay Financially Disciplined: More revenue doesn’t mean reckless spending. Keep cash flow and profitability in check.

Final Thought

You’re business has only grown as a result of what you created initially and the people you engaged to help you deliver it.

For me, that was a social experience that forged relationships, encouraged conversation and human connection,and, that just happens to be over great food and drink. It was delivered by a wonderful team of people who believed in what we did, and the market responded.

So, no matter how big you get, never loose sight of that.