Growth is uncomfortable, but it’s necessary.
Kim was recently quoted in an Inc. Magazine article about how many small business owners struggle to choose between growth and profitability. It’s a much harder decision than most want to admit.
Here’s what she said:
“When you invest in growth, your profitability will take a hit. You can’t simultaneously grow and post record profits, especially when you are a small business. This past year, I had to take a step back to build, which meant I wasn’t out there selling, and as a result, our revenue is down. It’s your responsibility as the business owner to anticipate trends, read the economy, and plan for the worst. It’s why we expanded our business to add a complementary offering, but it’s going to be a hefty lift and require additional capital to build. Growth is painful but worth the risk. You need to believe in yourself because no one else will.”
Because nobody else will.
Somewhere along the way, a thought was planted in our heads that every business should be making profits all of the time, and if you aren’t, your business is considered a failure. It’s nearly impossible to have growth and profitability at the same time. When you invest in growth, your profits will take a hit, and there is no nice way of saying they won’t.
Most small business owners choose short-term profit, and who can blame them? However, it’s one of the reasons only about 49% of small businesses make it to year five. By year ten, only 34% of small businesses will still be operating. Growth tests our patience, confidence, and profit. But it’s an important step toward sustainability.
One of the hardest parts of growth is the people around you will not understand the tradeoffs you are making. Unlike those who focus on profitability, you will quietly be building your foundation for what comes next. This year, we focused on growing instead of profiting. On paper, this would look like we had a down year, but it was actually an expansion.
This spring, we’re launching a new arm of 8THIRTYFOUR (literally ripping out our entire upstairs to do it). It’s called 8THIRTYFOUR Schools, and it will include coaching, workshops, facilitation, and e-learning. It’s programming created by business owners for business owners.
Big Deal Energy teaches you to show up with intention, own your quirks, and stop treating the most authentic parts of yourself like problems to fix. We’ll also be helping employers and the next generation in the workforce address the skills crisis with hands-on workshops and training.
We’re building this because we see how many entrepreneurs are struggling, and most of them are doing it in silence. Research shows that 22% of aspiring entrepreneurs say they don’t have the business knowledge and skills they need to survive in the small‑business world.
There will be a point when your business finally takes off, and everyone will assume it was an overnight success, but it wasn’t. It started when you chose to chase momentum rather than margins.
If you want to learn more about how you’re showing up as a business owner and take the first step into finding your Big Deal Energy, you can take the Quirks Quiz.
