Can small firms grow too fast?

Many start-ups struggle when they grow their business too quickly, which can stress out employees and may even interfere with the quality of products or services being offered. Planning how the company will grow is vital to ensuring that it is financially prepared for expansion. Approximately one third of small businesses place growth as the most important goal, leading many to come out with new products, partner with other companies, or try to reach new audiences. Planet Entrepreneur author Steve Strauss says entrepreneurs should be careful: “Take baby steps. One big mistake that people make is that they want to grow and implement a big plan. I’m a far bigger believer in testing small to see if it works. Don’t jump into the deep end – go to the shallow end and dip your toes in.” While it's good for new business owners to be confident in themselves and their companies, they need to be careful not to be overly confident when it comes to taking the company to the next phase. Dino Signore of the Edward Lorre Foundation, which supports entrepreneurship, says the question owners should be asking themselves is, "What is this opportunity and is my team capable of exploiting it?" If they are ready, than Signore adds "go after it."

USA Today, 10/21/13