Is Business Growth Always the Right Move? What SME Owners Should Consider
More revenue, more profit (hopefully!), more staff, more reach… but to what end?
Growth is often seen as the default goal in business. It’s exciting, energising and often assumed to be the natural next step. But when you’re setting growth targets, have you done a deep dive into why you want to grow?
Many SME owners set growth goals without fully exploring the drivers. Is it about generating a bigger return for the owners? Reducing reliance on a few key customers? Creating more capital to reinvest? Making the most of existing resources by scaling? Or simply keeping up with competitors?
Sometimes growth is strategic, sometimes it’s reactive and sometimes it’s just what we think we should be doing.
Growth Can Be Great — But It’s Not Always the Right Move
There’s no one-size-fits-all approach to growth. Some business owners I work with are conservative in their approach. They’ve weighed up the benefits and decided that staying lean, focused and profitable is the best path for them. Others are on a different trajectory—setting ambitious goals with a solid plan to reach them, often with an eye on future sale or expansion.
Both approaches are valid. What matters most is that the decision is intentional.
Upsides Growth Can Bring:
Strengthens market position
Generates higher revenue and profit
Diversifies your customer base
Helps you scale systems and talent
Boosts business value for future sale
These benefits can be compelling—especially if you’re preparing to sell your business, trying to reduce risk or looking to make the most of what you’ve already built.
Potential Trade-Offs:
More complexity and overheads
Higher costs and risk
Potential culture drift
Cashflow challenges
Difficultly recruiting additional employees
Growth often comes with growing pains; more people means more management, more customers means more service delivery and more revenue doesn’t always mean more profit—especially if costs scale faster than efficiency.
Growth Should Be a Strategic Choice, Not a Reflex
It’s easy to get caught up in the momentum of growth. But without clarity, you risk building something that no longer aligns with your original vision—or your capacity.
That’s why it’s so important to not only set growth targets, but to clearly articulate the why behind them. Your team needs to understand the purpose of the growth, not just the target numbers. When people know what they’re working toward—and why—it’s easier for them to align their efforts, stay motivated, and make smart decisions along the way.
Final Thought
Ambition is great. But clarity—and a lens to address potential growth challenges—is better.
So before you chase bigger numbers, take a moment to ask:
Why are we growing?
The answer might reshape your strategy and your decision