Here’s something I learned the hard way...
Valerie Donati
President, Brand Building Communications I Brand Positioning and Media Specialist
So, most businesses are consumed with growth which means investment. That can be infrastructure, people, etc. When I launched out on my own, I signed a lease for a VERY expensive office. I thought it would help me get clients.??
A few years into starting my New York-based business I decided to open an office in LA. We did a ton of business there and I thought this would help me get clients.
Unfortunately, it never did. Then when the 2008 downturn happened and I had a big staff I resolved to keep everyone on, even though we were hemorrhaging money.?
Bottom line – big lesson learned. Don’t overextend. I didn’t need a fancy office; I didn’t need an office in LA, and I should have let a few people go. Never nice but necessary.
Business is always going to be a dance. How much do you need to invest to grow? Is the growth too expensive to warrant the investment? What margins make sense for you? Are you risk-adverse, and/or do you have the resources to pull yourself out of a tricky situation with minimal damage? And the big one – if things go pear-shaped do you have the internal stamina to pull through?
CEO/Founder of TANDA Digital | B2B Growth Expert | Facilitated $10M+ in Sales | 150+ Companies Helped | 2x Agency Owner
2 年Great learnings here Valerie! I always tell the agency owners I work with, only hire/expand when it starts hurting. If it doesn’t hurt, then you’re likely doing it too soon and taking on too big of a gamble! ??
??Sustainably advancing the Blue Economy from Kuring-gai country.
2 年I remember the huge desk and fancy offices my first business had. Lots of outlay on things my clients never saw (I always met them at their offices!). Made it much harder to run a successful business (so it failed...). ??