Is your organization large or small? Is it growing or sustaining? Are you OK with that?
Whether you work for, or run, a large or a small business, nonprofit, or other organization, at some point, someone must make a choice—to either pursue growth, let it happen organically, or consciously attempt to stay small.
Many might say an organization must grow to stay in existence. And there’s certainly nothing wrong with growing and making more money. But there also are very real benefits to staying small, as noted by Founders Grid, including:
• Lower overhead: Staying small, in both team size and scope of work, allows you to put more money back into the organization, with fewer expenses, space, and resources required.
• Strategic flexibility: If something doesn’t work, you can fix it, change it, or cut it quickly—no long, drawn-out process required.
• Less risk: While there’s always risk, staying smaller often helps you to recover faster from setbacks.
• Faster profits: For a profit-making organization, a smaller firm makes less profit, but money made is divided among fewer expenses and salaries.
• Quicker results: Faster decision-making, streamlined processes, and less bureaucracy can yield speedier action and results.
• Personal service: Each individual in a smaller organization has a larger stake in it. They’re likely to build stronger ties with clients, customers, and partners. And they often take great pride in the organization’s accomplishments.
• Location flexibility: If you have a small team, you can set up shop just about anywhere, which means you have more control over where you live.
• Freedom: Stakeholders in a small organization each have more responsibility. But they also have more lifestyle flexibility and scheduling freedom. Work/life balance can be a little easier to attain.
• Consistency: While all jobs change over time, people in smaller organizations start out with great variety on their plates. But while their jobs change multiple times each day, they’re also likely to have more control over that change, and can continue to pursue activities that encouraged them to start a particular career path in the first place.
Making huge profits, growing fast, and making a mark also have their benefits. But whatever an organization’s size or ultimate goal—for all of us—realistically looking at the pros and cons of going for growth versus staying small is a wise self-awareness exercise.
