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​Development Obsession. Business Development.

5/31/2018

1 Comment

 
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Does every business need to grow?
 
When we founded the Business Revolutions, we decided that our customers would be microentrepreneurs who want to develop their business. Thinking about what we are going to do, we had this assumption in mind.
 
Among those who are employed and have (defined differently) a success, two groups can be distinguished. Some people want to develop, take up difficult challenges, take more and more responsibility, go beyond the comfort zone. And others are great at what they do and they want to do it forever. No approach is worse or better than another. Both groups of people are equally important for the success of the company. Similarly, there are two types of companies in business. Those who want to be huge, enter new markets and those who like to be small and have no dreams of expansion. When talking to entrepreneurs, the surprising majority speaks of the will to develop and grow, they make plans and strategies. It would seem that nothing, just to enjoy and roll up your sleeves to work.
 
But when you take a closer look, when you ask what it means to grow, you will notice an utterly strange obsession with development. As in a career, in business, many people confuse the desire for growth with promotion, with earning more money. And that's not the same.
 
Everywhere we hear progress, growth, momentum, success, the next level, a step forward, a step up. Every guru talks about the need for development. The Americans say 'Grow or Die'. As a result, all entrepreneurs want to develop. That is to say, they say so. But will they put all their effort into development or will they just (say) want it, because it's accepted, because as in a recruitment interview, you have to answer it? And why does everybody think that it is necessary to grow constantly? Why the fear of confessing to being a small business?
 
What does development mean?
 
Development can have different meanings. In business, it can mean a huge change like creating a new category or simply success of a small shop at the corner, which will perfectly meet the needs of new customers. This small shop does not have to forcefully introduce new products or open new branches. Its development may consist in adjusting the current offer, adapting it to the market needs, and... developing along with the market development. Growth is not for everyone, because it requires change, continuous improvement, discipline and...risk. Moreover, poorly managed growth can be overwhelming and damaging. There are many examples of companies that have not kept up with their growth at certain times (e.g. Toyota - loss of product quality, Starbucks - loss of service quality).
 
In business, development through the ability to constantly improve and adapt is more important than growth through growth. Markets, technologies and customer needs will continue to change. The competition will improve its offer. No matter how well you plan your business, you will have to change and adapt it. It's impossible to stay in the same place - "Even if you're on the right road, you'll be on the right track if you're sitting there" - Will Rogers. The times of businesses that only filled the shelves with goods and operated for years in one way and the same way practically ended. Customers are more aware and demanding. Every company has to constantly increase the value of its offer for the customer. Sometimes this can mean huge changes. Not necessarily a change in the size of the company, but perhaps the nature of the business, the products, the business model, etc., will have to be changed.
 
Awareness is important.
 
Why? Small enterprises have completely different objectives than highly scalable businesses. Perhaps they both want to grow and grow. But the former are looking for predictable revenues with reasonable effort and risk. The latter, having great visions of new categories, want to replace old solutions with an irrational amount of work and taking high risks. No approach is worse than the other. Each means different steps and different tools. Think about your goal, how much you want to grow, what development means for you. It is important that this is a conscious choice.

1 Comment
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