Entrepreneur

7 Reasons Why Bigger Isn't Always Better for Your Startup

Keeping a tight rein on expansion may actually be good for your company.

Dean Cycon had been selling his fair-trade coffee to Whole Foods Market outlets in New England for five years when he got "the call." The natural-foods giant wanted to expand distribution of Dean's Beans Organic Coffee from the 17 stores that already carried the product line to the entire U.S. Whole Foods roster.

Sounds like an entrepreneur's dream come true, right? But Cycon hesitated when he realized the change would triple the size of his Orange, Mass.-based business overnight. "I looked at what that would do to our company," says Cycon, CEO. "First, it would require us to add evening production shifts, which we're not interested in, because family and quality of life are a big part of our company culture. It also would require a $500,000 investment in machinery to make roughly the same profits. I realized we'd have to work three times as hard to be in the same place financially in terms of profit, and what's the point in that?"

Cycon respectfully declined the Whole

You’re reading a preview, subscribe to read more.

More from Entrepreneur

Entrepreneur11 min read
The Top 150 New and Emerging Franchises
Franchising is full of decades-old brands that have proven themselves—so why would someone consider buying a franchise from a brand-new franchisor instead? There are many reasons: Although newer franchise concepts may come with higher risk, you can u
Entrepreneur1 min read
The Path To Millions Starts Here
A million dollars sounds sexy. But what is it, really? For some, a dream. For others, a goal. A million in profit is a form of financial security—or at least the freedom to take some risks. A million in revenue is a marker point where business models
Entrepreneur2 min read
Which Fridge Would You Eat From?
Will people buy cheap food to help save the planet? The answer is yes—and no. This was the idea behind Flashfood, an app-based marketplace that aims to divert food away from landfills, and to families in need. It collects food nearing its best-by dat

Related Books & Audiobooks