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Sometimes you're kind of forced into it: if your growth starts taking off faster than you thought, you may be in need of more capital just to stay in business.
by yafbum 4y ago
Sometimes you're kind of forced into it: if your growth starts taking off faster than you thought, you may be in need of more capital just to stay in business. At that point you have a choice: slam the brakes (turn down customers), borrow (risky), raise (dilutes you), or sell out. If you can find a solid working relationship within the acquirer's company, all is good...
- phkahler 4y agoThere is actually nothing wrong with turning down business. No need to grow faster than you can handle. A company in the situation you describe is doing something very right, so maintaining that seems like a good strategy.
- yafbum 4y agoFor an entrepreneur who set out to fix a problem in the world, it can feel very wrong not to give customers the solution that you know you can give them, for mere capital reasons.
- 1123581321 4y agoThere is nothing wrong with it, but it's hard to do skillfully, especially in the chaos generated by rapid growth, and you may not realize the need until you're already trapped by your existing commitments. Good relationships in the company can fall apart in the decision-making, too (e.g. if someone's personal/career growth path is cut off by the decision to stop pursing something that's been built towards for years.) Some types of businesses can do it more easily than others. Professional services can probably do it the easiest. A B2C business with a turnkey offering could have a lot of trouble paring back, especially if the product has a physical aspect.