Into The Danger Zone

Looking at business of all sizes, you can’t escape thinking about how vulnerable business is at different growth phases – some sizes seem to be more stable than others.

Micro businesses seem to be very stable because there is limited change from month to month, overheads are low, they are often run from home. Small swings in demand can easily be absorbed by sensible use of technology and outsourcing. The management challenges are limited and with a little bit of help easily manageable.

Small to Medium Businesses are in the business danger zone.

Small to medium businesses are the most vulnerable and volatile group of companies and to me they are in “The Business Danger Zone”. Apart from dealing with their customers as before , new problems and challenges are arising all the time – growing overheads, more management skills, HR, more legislation, revenue income has to be growing at least in line with the cost base, margins are lower due to admin overheads, just to name a few.

Big business is easier again, it becomes a statistical optimization game. Big companies fail mainly because of top management mistakes.

I don’t mean to be discouraging in any way, but the question is, are you ready for The Business Danger Zone? I sure hope so, because the economy needs small businesses to grow.

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