Slower growth without fast failure

I presented recently at an Opendoorz Ltd networking session, all about how at The Henley Coaching Partnership we help Founders grow their business using, amongst other things, a simple 4 step process. One part of that process is to help Founders increase the leverage of the company they’re running by ensuring that every transaction - within it, and for the customer - gets better and easier than the last.

In talking about this, I mentioned that companies can get leverage deeply wrong when they grow too fast because the quality of any transaction is ignored ie how a customer is treated over time, and how the machinery IN the company doesn’t help employees, shareholders and Founders alike. 

In raising the issue of fast growth, I was inadvertently highlighting how it’s a key part of the coaching that I provide - ie to help companies and Founders find their level of speed and growth, so they’re sustainable and steady in their growth, rather than trying to grow so fast they mess it up along the way, and miss out on so much themselves too. 

However, this isn’t a popular or - often - obviously desired way of growing a business.

We mistakenly equate fast in the business world with better, without looking at the collateral, and foundational, damage that comes along with it. 

If we're constantly striving to increase revenue, expand our customer base, and scale operations to new heights, what might this do to us as the Founder who wants to create an impact but still have a life outside of our business?

And what does it do to the employees who see nothing but speed over efficiency, and who feel nothing but stress over impact? 

There’s so many benefits to taking a slower approach to business growth that are often overlooked in our fast-paced, hustle culture. 

First, slow business growth allows for a more sustainable and stable foundation. When we rush to expand our operations, we can often overextend ourselves financially and operationally. This can lead to burnout, high turnover, and a lack of focus on core business functions. By taking a slower approach, we can ensure that we are building a strong foundation for long-term success.

Second, slow business growth allows for greater agility and adaptability. When we are growing at breakneck speed, it can be difficult to pivot or adjust our strategy when things go wrong. This can lead to costly mistakes and missed opportunities. By growing slowly, we have more time to assess our options and make informed decisions based on market conditions, customer feedback, and other factors.

Third, slow business growth fosters a more intentional and purpose-driven culture. When we prioritize rapid growth above all else, it can be easy to lose sight of our core values and mission. By growing slowly, we can ensure that we are staying true to our values and building a culture that aligns with our vision for the future. This can lead to greater employee engagement, customer loyalty, and long-term success.

But, but... this isn’t a fashionable or seemingly fun way to grow, so these benefits can feel insignificant at times alongside the idea of fast growth and exit and more money.

We need great examples of companies consciously choosing slower AND benefitting more - yes financially, but also mentally as founders and stakeholders, and the impact they make elsewhere, like a small thing like the planet.

I saw a great post by 🧠 Dan Murray-Serter on being a B-corps which might grow slower and less glamorously but yield, what do you know, more leverage in the long term.

Another example that comes to mind is Patagonia which started in 1973 making climbing equipment and in focusing on quality, sustainability, and social responsibility has grown with a reputation for excellence and reportedly worth $3billion - with the handy addition that all profits have been transferred to their one shares holder - the earth.

Of course there's downsides to slow business growth as well. 

It's frustrating to watch competitors surge ahead while we're taking a more measured approach.

It's also challenging to balance the need for growth with the desire for stability and sustainability.

And, how do we know that potential funders also appreciate our desire for this way of business building? We have to trust that it’s right, and let growing examples of companies around us tell us they’re doing it in a similar way too. 

By taking a more intentional and measured approach to growth, we can grow a business that's not only successful in the short-term, but also sustainable and adaptable in the long-term.

Whilst rapid growth is impressive to some, there's many paths to success in business, and slow and steady growth can often lead to long-term sustainability and success. So, the next time you're feeling pressure to grow quickly, take a step back and consider the benefits of a slower approach.

Perhaps Gentle Business remains where it’s at?