Why Many Successful Small Business Owners Never Become Bigger

Posted by: lukwago J in Business August 9, 2021

There are a lot of small [and even medium size] business owners who are very successful at what they do, and yet they never scale to become national or even have a business that would be listed on the local Stock Exchange.

Why is that?

One reason is that they begin to focus on their own comfort ahead of the business. They build a house, buy a farm, better car, holidays and so own. The business exists to fund their ever increasing needs.

There is nothing wrong with it, if that is what you want. It is after all your money. And I would never criticize anyone for what they do with their money.

Just a word of advice though:

If you really want to build a big, big business; you need to defer some of that stuff. Things like houses, cars, holidays, divert capital from the business.

When I was living in Zimbabwe, I lived in a middle income neighborhood called Vainona, and I never bought a luxury car like a Benz. All my holidays were taken in the country. I pushed every cent into growing the business.

I always had one objective, to list the company on the ZSE, and then get paid in dividends and capital growth. Then I hoped to do those other things albeit with moderation.

Don’t compete with your own business, for capital because your business will lose. Business owners should have financial discipline if they really want their businesses to grow.

By Strive Masiyiwa

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