Expansion Can Kill Your Business

 

One thing that will kill a business before it reaches its full potential is expansion. I understand that people want what ever they do to reach the highest level possible but there is a window where expansion must happen. If you attempt this before or miss this window then you risk your business folding on itself. This is business management 101 as you don’t want to pour money into a business that isn’t succeeding as most tend to do. Yet the flip side of that coin is needing to expand but you do it too late leading to losing your potential work to competition.

 

There is a window in every business that you must recognize for when it is time to take it to another level. This is when the demand of your business reaches the point where you can barely maintain yourself. Basically when there is almost too much work to go around and it doesn’t seem to be slowing. If you jump the gun here and the jobs slow down then you will take a loss for that expansion. But if you wait too long then the business can pile up and you can’t be everywhere at one time. This leads to upset customers and lost funds as they go else where. It is a very touchy situation that requires risk and foresight but you will know your window when it strikes as long as you are well organized.

 

How do you expand? You bring in other people, you buy more equipment, and you upgrade what ever you have. When it comes to rap people want to expand their career well before it is time to. Really they do this because they have no clue what they are doing and either they fail at this or their career collapses because there isn’t enough money coming in to maintain. It is usually out of laziness that rappers reach out to managers, lawyers, labels, etc. They don’t know how to get money so they seek people who do so they can simply make music and this is a mistake. Understand that everything these people can do for you can be done by yourself but for free. You only expand and gain a team when you have gotten to the point where it takes too much time away from what is making money for you to do so. Until then you can book your own shows, promote your own shows, make your own records, and most importantly collect your own money.

The moral to this story is that expanding your brand is something you do in a small window. You don’t want to be too late or too early because both can doom your business. Expansion is merely a tool you use when you are already making money and the amount of business begins to exceed your capabilities. It is not what you do inject life into a failing business or to begin off doing. Instead expansion is the last line of growth you should be very weary of using. The reason being is the cost related to expansion, if the money isn’t there then sustain growth then things fall apart so you must do expansion in the proper window.

Share