by NAB » Fri Oct 26, 2012 10:52 am
One other thing that Saz mentioned concerning growing your company and stagnation. Hopefully I'm not misreading what he wrote, but I think there is a certain economy of scale involved in certain businesses that can potentially cap the size of your business at some point. When my firm was just getting it's feet under it we hired a consultant to help us target what kind of firm we wanted to be and how best to achieve that. We looked at a lot of firms that we respected (and many we didn't want to be like) and were searching for our sweet spot based on the kind of work we wanted to do. We've always kept the number of 100 in the back of our minds ever since, which is our own personal ceiling. From all the firms we looked at, once that magic number starts getting exceeded, the quality of their work started to suffer due to the type of clients needed to maintain that level of staff. You get to a certain level of bloat and suddenly you find yourself in the position of not being able to turn down work and also having to hire less qualified people to staff all of that work. It becomes a self-fulfilling prophesy.
It's really based on what type of business you are running of course, but bigger doesn't always mean better, in fact, I'd say bigger rarely means better.