Dangers Of Success

Many entrepreneurs choose to gauge their success based on the ability to start and grow their business to a point of becoming a recognizable name in the industry within which they compete. Furthermore, a highly successful business endeavor usually means big profits that translate into financial security for the family now and well into the future. Those are admirable goals certainly worth pursuing with every fiber of an entrepreneur 's being. The problem is they aren 't that easy to achieve.

Standing in the Way of Success

There is only two ways a business is going to succeed at a high level. The first way is through dumb luck. Unfortunately, the success is usually short lived because dumb luck eventually runs out. The other way is to develop

The item that requires more explanation is the last one. For a lot of people, the concept that too much early success can be a negative is hard to fathom. However, businesses fail everyday from uncontrollable success and growth. It might not happen right away, but different aspects of the business can start eroding when things get out of control. New entrepreneurs and small business owners need to take stock of the following five dangers they may face if they allow their businesses to grow too fast.

1. Debt issues - In all the excitement of watching the business grow to unexpected levels, inexperienced small business owners will often decide to leverage the this new success in order to secure more financial resources in hopes of creating even more success in the immediate future. Without a clear idea where the business growth might top out, they run the risk of taking on too much debt that stands to destroy the business should these new levels of growth fail to continue. It would be a far better option to wait until the profits are big enough to finance continued growth without the need for additional

Losing Site of the Business ' Original Mission - In the very beginning, most viable businesses will develop a "mission statement" that states the company 's goals to create quality products and become a upstanding part of the community. When a business owner gets wrapped up in trying to maintain unexpected growth, they often lose site of what they were trying to do. Product quality is often sacrificed as the business starts cutting corners in a effort to meet growing sales demand. Poor product quality can create a bad reputation within the both the business and local community.

4. Employment Issues - When a business grows too fast, established lines of communication between the business owner and their employees tend to break down. Also, the business is going to be put at risk if employees haven 't had enough time to be adequately trained on some of the new responsibilities they may have to assume as the business owner focuses on trying to get control of the business. When employees find themselves overwhelmed, they might seek other employment in a more stable work