August 20, 2015

Undone by Rapid Growth

more consumers buying artisan foodMany small entrepreneurs believe that if only their business could grow that then all their problems would be solved.  Like anything though, rapid growth comes with its own set of issues and can, believe it or not, actually be your undoing.Was that what happened at Good Eggs, the pioneering technology company that aimed to make it easier for local farmers & producers to connect with (and be delivered to) local consumers?  According to the company’s CEO in a statement made on their blog earlier this month, that was the main problem the company ran into.

Good Eggs is dedicated to building the local food community and excited by that mission, and venture capital funding to help them achieve that mission, they set off from their home city of San Francisco to spread Good Eggs to Los Angeles, Brooklyn, and New Orleans.

Rob Spiro, Good Eggs CEO, called their rapid growth “the single biggest mistake” the company made in the statement that announced the closing of their non-San Francisco locations and a downsizing of their SF-based staff.

Good Eggs had capital, but the problem they ran into was complexity.  You may have your systems and processes down, but what you may lack is capital.  In either case, growing too quickly can easily strain a small business and force you, ultimately, to pull back or even close up shop entirely.

So as you look to grow, be smart and strategic about your growth plan because there really can be too much of a good thing.

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One comment on “Undone by Rapid Growth

  • Thembi on said:

    This is my biggest fear. And when I tell people I don’t want to “blow up” in the first 6 months after launch they don’t seem to understand my fear. But growing too quickly is just as detrimental as not growing quickly enough.

    Thanks for the post.