The title of this piece has probably caught you off-guard. You’re used to everyone telling you that expanding your business is the way forward. It’s what every company should try to do if they want to be successful.

You hear this advice given all the time to small business owners. But, it might not be the best advice after all. When you have a look at some small businesses, you realise that expansion is a bad idea. I know you’re still confused, so, allow me to demonstrate my point.

Listed below are some arguments on why expanding your business can be the wrong thing to do:

It Can Be Too Demanding

One of the main problems people have with expansion is that it can be too demanding on your resources. It may seem like a good idea, but you simply can’t keep up with everything. It’s not just me that thinks this, some of the leading business owners agree too. I saw a Forbes interview with Hampton Creek where the CEO said something similar. He mentioned how you’re not going to be good if you’re doing too much and stretched too thin. Expanding your business can take a lot of hard work and effort. Some companies just can’t handle it because it’s so demanding. Consequently, they struggle, and things go bad instead of going well.

It Might Not Be Practical

There are some cases where expanding your business isn’t a practical idea. And, by expansion, I’m talking about taking your company to different parts of the country/globe. You’re making your business bigger and trying to cater to different markets. With some small businesses, they’re successful because of the location they’re in. They dominate the local market, so things are going well. The next step is often to think about branching out. However, your small business may be a hit here, but not somewhere else. It’s all to do with the local market, and it won’t be a practical solution to expand. You’re earning enough money here, and you’re the best in the business. It makes more sense to focus on staying at the top than spending loads to expand where you might not be a hit.


It’s Too Early To Expand

The number one reason expanding your business can be a bad idea is because you try too early. Too many companies look to expand way before they should. It’s because owners are eager to try and dominate on a larger scale. They see all of these big businesses earning millions, and want a piece of the action. A small business owner should think small-scale until the time is right. Expansion is only a good idea when you do all the calculations and know that you can cope with it.

It’s important to note that I’m not saying everyone should avoid expanding their business. Of course, there are situations where expansion is a great idea. The point of this article is to underline a few points about when it’s not a good idea. It comes down to your personal business, and how you’re faring at the moment. All I’m saying is don’t jump into expanding things when you’re not ready!