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Then you have an interesting challenge. Businesses are never at equilibrium. So if you're not growing, you're shrinking. There may be lulls where things are fla

Then you have an interesting challenge. Businesses are never at equilibrium. So if you're not growing, you're shrinking. There may be lulls where things are flat, but you never want to be flat. Likewise, if you resist growing and have competition, they will see the opening you leave, continue growing, and then look to use that leverage to buy or kill your business.

rileymat2 9y ago
> Then you have an interesting challenge. Businesses are never at equilibrium. So if you're not growing, you're shrinking. There may be lulls where things are flat, but you never want to be flat. Is this true? I suspect that a majority of small business are at equilibrium, providing income to the owner/operator. I just don't have the data to prove it.
- shostack 9y ago
  If you find any supporting data, I'd love to see it because I dearly hope this to be true. Unfortunately, I suspect most of these businesses are vulnerable to larger competitors, market fluctuations and other risk factors that one would want a growing business to protect against. However I'm sure many businesses have managed to keep things fairly stable with modest growth and loyal customers for the lifespan of their owners relationship with the business. I'm just not sure if that is enough to support the fact that there is in fact a state of equilibrium for a business.
curun1r 9y ago
> Businesses are never at equilibrium Many small businesses are. It's a key insight to serving that community as a b2b provider that growth and new business aren't the selling points they are to larger businesses. What most small businesses we talked to wanted was quality customers who will bring dependable, repeat business. They want to operate as close to capacity as possible with as little uncertainty as possible. Too much business overwhelms them. Too little starves them. Helping them keep to the sweet spot at the upper end of their capacity made them much happier than just trying to drive as much business to them as possible.

rileymat2 9y ago

> Then you have an interesting challenge. Businesses are never at equilibrium. So if you're not growing, you're shrinking. There may be lulls where things are flat, but you never want to be flat. Is this true? I suspect that a majority of small business are at equilibrium, providing income to the owner/operator. I just don't have the data to prove it.

shostack 9y ago
If you find any supporting data, I'd love to see it because I dearly hope this to be true. Unfortunately, I suspect most of these businesses are vulnerable to larger competitors, market fluctuations and other risk factors that one would want a growing business to protect against. However I'm sure many businesses have managed to keep things fairly stable with modest growth and loyal customers for the lifespan of their owners relationship with the business. I'm just not sure if that is enough to support the fact that there is in fact a state of equilibrium for a business.

curun1r 9y ago

> Businesses are never at equilibrium Many small businesses are. It's a key insight to serving that community as a b2b provider that growth and new business aren't the selling points they are to larger businesses. What most small businesses we talked to wanted was quality customers who will bring dependable, repeat business. They want to operate as close to capacity as possible with as little uncertainty as possible. Too much business overwhelms them. Too little starves them. Helping them keep to the sweet spot at the upper end of their capacity made them much happier than just trying to drive as much business to them as possible.