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The rate at which a company grows is often a business factor that is overlooked. In fact, many people think that companies should grow as quick as possible to cover as much of the market as they can. However, the rate at which a company grows is very important. Growth that is too quick will generate a company environment that is unable to keep up with the demand for its services and growth that is too slow will make the company obsolete among its competitors. With all of the factors that contribute to the growth of a business how should companies determine the best rate for their development?

Company Growth Factors

Aside from supply and demand a company is able to grow based on the capital and opportunities that they have available to them. Many companies struggle to expand due to a lack of capital while others fail to expand as a result of a lack in opportunities to grow within their markets.

Dangers of Growing too Fast

Growing too fast, while it is most likely preferred over growing too slow, can be dangerous for a company and its culture. A company that grows too fast may not have the supply to meet the demands that are being placed on them. Additionally, the company may not be skilled enough in efficiency to meet the increased demands. As a result of the lack of products or inefficiencies potential long-term customers may not be interested in the company any more. Understanding that first impressions last, it can be really hard for a company to regain trust from new customers when they have already lost the trust.

Dangers of Growing too Slow

The thought of growing too slowly is a thought that most likely frightens the majority of business owners. Businesses that grow too slowly miss out on large opportunities and demands that may have been wildly beneficial to their business. Additionally, a business that is growing too slowly may struggle to make profits and ultimately fail as a result of an unsustainable financial situation.


A company’s rate of growing should be balanced. Businesses should monopolize on the opportunities that they have available to them but should also understand what they are capable of.