{"id":7203,"date":"2017-06-05T08:56:23","date_gmt":"2017-06-05T11:56:23","guid":{"rendered":"https:\/\/www.ibtdi.com\/?p=7203"},"modified":"2017-06-05T08:56:23","modified_gmt":"2017-06-05T11:56:23","slug":"4-risks-of-rapid-expansion-of-emerging-companies","status":"publish","type":"post","link":"https:\/\/www.ibtdi.com\/en\/4-risks-of-rapid-expansion-of-emerging-companies\/","title":{"rendered":"4 Risks of Rapid Expansion for Startups"},"content":{"rendered":"<p style=\"text-align: center;\"><a href=\"https:\/\/wp.me\/p6Laog-1Sb\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" title=\"https:\/\/wp.me\/p6Laog-1Sb\" src=\"https:\/\/assets.entrepreneur.com\/content\/16x9\/822\/20160515115001-shutterstock-352158581.jpeg\" alt=\"\" width=\"698\" height=\"393\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">We see many startups around the world, both local and international, pursuing rapid expansion and getting caught up in multiple competitive battles at once.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">In fact, I know Arab startups that are still in their early stages yet are determined to enter multiple markets and sectors, seeking profits and more. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Beyond the popularity of this approach, I hold a different view from those who advocate rapid expansion in business.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">I believe it is a serious mistake for these small companies to launch multiple products and services in a short period and compete across many sectors without achieving overwhelming success in their main area\u2014or even in the areas they have already entered. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">\u0627\u0644\u0631\u0626\u064a\u0633\u064a \u0623\u0648 \u062d\u062a\u0649 \u0627\u0644\u0645\u062c\u0627\u0644\u0627\u062a \u0627\u0644\u062a\u064a \u062f\u062e\u0644\u062a \u0625\u0644\u064a\u0647\u0627 \u0633\u0627\u0628\u0642\u0627 \u064a\u0639\u062f \u062e\u0637\u0623 \u0641\u0638\u064a\u0639\u0627 \u0644\u0644\u063a\u0627\u064a\u0629 .\u00a0<\/span><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Here are the reasons.<\/span><\/p>\n<p style=\"text-align: center;\">.<\/p>\n<h2 style=\"text-align: center;\"><span style=\"font-size: 28px; font-family: 'comic sans ms', sans-serif; color: #00ccff;\"><strong>1. Distraction is the enemy of focus, and a company that lacks focus is at risk.<\/strong><\/span><\/h2>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">If you run a small business, you\u2019re still a modest brand in the market\u2014not Microsoft, Google, or even Apple, brands <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">that operate many divisions and compete in multiple fields. They have large teams and independent divisions, each with its own plans, strategy, and financial resources.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">But in your new company, you have just one team\u2014or at most two\u2014which means launching more products and services can distract your team and undermine its ability to compete effectively in a specific area. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">\u0645\u0624\u0633\u0633\u062a\u0643 \u0639\u0644\u0649 \u0627\u0644\u062a\u0646\u0627\u0641\u0633 \u0628\u0642\u0648\u0629 \u0641\u064a \u0646\u0642\u0637\u0629 \u0645\u0639\u064a\u0646\u0629 \u0628\u062d\u0630 \u0630\u0627\u062a\u0647\u0627 .<\/span><\/p>\n<p style=\"text-align: center;\">.<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 28px; font-family: 'comic sans ms', sans-serif; color: #00ccff;\"><strong>2. Your financial resources don\u2019t allow you to expand quickly.<\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Developing the products and services you offer requires funding. While your company\u2019s profits and capital are still modest, I believe that adding <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">products and services is nothing less than reckless.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">It\u2019s easy to plan to enter a particular market, but it\u2019s difficult for your company to take on additional development costs while profits are still in their early stages.<\/span><\/p>\n<div id=\"wpads-ad-block-1\" style=\"text-align: center;\"><\/div>\n<p style=\"text-align: center;\">.<\/p>\n<h2 style=\"text-align: center;\"><span style=\"font-size: 28px; font-family: 'comic sans ms', sans-serif; color: #00ccff;\"><strong>3. Focusing on your core business means achieving success faster.<\/strong><\/span><\/h2>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Focusing on a specific activity and dedicating your team\u2019s efforts to it, while making the most of your organization\u2019s resources, means more profits, new customers, and a broader audience <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">for the brand you manage.<\/span><\/p>\n<div style=\"text-align: center;\">\n<div><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">This also gives you more room to launch better product versions that address your competitors\u2019 weaknesses. With time and hard work, success will follow. <\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">\u062d\u0644\u064a\u0641 \u0645\u0624\u0633\u0633\u062a\u0643 .<\/span><\/div>\n<\/div>\n<p style=\"text-align: center;\">.<\/p>\n<h2 style=\"text-align: center;\"><span style=\"font-size: 28px; font-family: 'comic sans ms', sans-serif; color: #00ccff;\"><strong>4. Rapid expansion can eventually lead startups to shrink <\/strong><strong>!<\/strong><\/span><\/h2>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Entering multiple fields in quick succession and failing to wait for results from previous projects will eventually force you to look for ways to eliminate departments and teams <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">you\u2019ve added. You\u2019ll realize you were wrong to decide to venture into new fields and other markets where your competitors\u2014and often industry giants\u2014are active.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">In this situation, the company\u2019s reputation often suffers in the eyes of its fans, observers, investors, and even business partners, making it seem smaller than <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">it really is.<\/span><\/p>\n<p style=\"text-align: center;\">.<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Many startups struggle with their decisions. Some enter a new market and invite competition, even though they have yet to <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">make the most of their creativity and capabilities in the markets they already serve. They have not given themselves the time to focus for the long term and reap greater rewards\u2014most notably, building their brand <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">and increasing its recognition, along with profits, capital, and overall scale, until they become medium-sized or even giant enterprises!<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">Before deciding to enter a new market while your startup is still competing in its core market, think carefully. You may later have to withdraw from the new market. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px; font-family: 'comic sans ms', sans-serif;\">\u0628\u0645\u0631\u0627\u0631\u0629 \u0641\u0627\u062f\u062d\u0629 .<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>\u0646\u0631\u0649 \u0627\u0644\u0639\u062f\u064a\u062f \u0645\u0646 \u0627\u0644\u0634\u0631\u0643\u0627\u062a \u0627\u0644\u0646\u0627\u0634\u0626\u0629 \u062d\u0648\u0644 \u0627\u0644\u0639\u0627\u0644\u0645 \u0633\u0648\u0627\u0621 \u0627\u0644\u0645\u062d\u0644\u064a\u0629 \u0623\u0648 \u0627\u0644\u062f\u0648\u0644\u064a\u0629 \u062a\u0639\u062a\u0645\u062f\u00a0\u0627\u0644\u062a\u0648\u0633\u0639 \u0627\u0644\u0633\u0631\u064a\u0639\u00a0\u0648 \u062a\u0648\u0631\u0637 \u0646\u0641\u0633\u0647\u0627 \u0641\u064a \u0623\u0643\u062b\u0631 \u0645\u0646 \u0645\u0639\u0631\u0643\u0629 \u0645\u0646\u0627\u0641\u0633\u0629 \u0628\u0646\u0641\u0633 \u0627\u0644\u0648\u0642\u062a . \u0648 \u0628\u0627\u0644\u0641\u0639\u0644 \u0623\u0639\u0631\u0641<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":3,"featured_media":7204,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_ibtdi_aa_focus_keyword":"","_ibtdi_aa_secondary_keywords":"","_ibtdi_aa_audience":"","_ibtdi_aa_tone":"","_ibtdi_aa_summary":"","_ibtdi_aa_reviewer_name":"","_ibtdi_aa_reviewer_bio":"","_ibtdi_aa_reviewer_url":"","_ibtdi_aa_reviewed_date":"","_ibtdi_aa_service_id":"","_ibtdi_aa_related_ids":"","_ibtdi_aa_human_reviewed":"","_ibtdi_aa_disable":"","_ibtdi_aa_disable_links":"","_ibtdi_aa_sources":"","_ibtdi_aa_update_notes":"","footnotes":""},"categories":[491],"tags":[777,778,779,781,10017,3050,2185,782,3482,783,1083,5148,1320,1677,1924,113,9,10,11,13,373,21,374,226,42,240,411,415,4505,790,132,1034,135,144,146,1331,2612,793,794,11567,11568,24,48,18,797,798,2055,1103,11569,2125,800,803],"class_list":["post-7203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-491","tag-777","tag-778","tag-779","tag-781","tag-10017","tag-3050","tag-2185","tag-782","tag-3482","tag-783","tag-1083","tag-5148","tag-1320","tag-1677","tag-1924","tag-113","tag-9","tag-10","tag-11","tag-13","tag-373","tag-21","tag-374","tag-226","tag-42","tag-240","tag-411","tag-415","tag-4505","tag-790","tag-132","tag-1034","tag-135","tag-144","tag-146","tag-1331","tag-2612","tag-793","tag-794","tag-11567","tag-11568","tag-24","tag-48","tag-18","tag-797","tag-798","tag-2055","tag-1103","tag-11569","tag-2125","tag-800","tag-803"],"_links":{"self":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts\/7203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/comments?post=7203"}],"version-history":[{"count":0,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/posts\/7203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/media\/7204"}],"wp:attachment":[{"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/media?parent=7203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/categories?post=7203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibtdi.com\/en\/wp-json\/wp\/v2\/tags?post=7203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}