Why Bigger Isn’t Always Better (5/7)

by Growth Strategies

A Cold Welcome
Sule pulled his coat tighter as they stepped out of the hotel lobby. “This cold is something else,” he muttered. Even though their flight had landed last night, he and Aminu were still struggling to adjust to the UK weather. Lagos had been hot when they left, but now, wrapped in thick layers, they were still shivering.

Aminu exhaled sharply, rubbing his hands together. “Three years in this partnership, and I still don’t understand how you people survive here.”

Kunle chuckled as he led them to the car. “You get used to it. And if you don’t, you just drink more tea.”

He opened the car door and gestured to the backseat, where samples of their suya spice mix and the new dry pepper blend were neatly stacked in branded cartons. Aminu picked up one of the boxes, turning it over in his hands. The design was sleek, the branding bold and professional.

“You’ve stepped up,” he said, nodding in approval.

Kunle grinned as he started the engine. “We had to. Retailers don’t just want good products; they want good packaging, clear labeling, everything looking professional.”

He pulled into the road, weaving through traffic with practiced ease. A few minutes later, his phone buzzed. He glanced at the screen and let out a sigh.

“Another order delay?” Sule asked, watching his expression.

Kunle nodded. “One of the restaurant clients. They were expecting delivery this morning, but it’s still at the warehouse. The logistics guys are stretched thin, and with the three different packaging formats—retail, restaurant, bulk—it’s taking longer than expected to process orders.”

Sule exchanged a glance with Aminu. The business had grown, yes, but at what cost?

The Facility Visit – Spotting the Problems
The moment they stepped into the facility, Aminu and Sule could see why Kunle was overwhelmed.

The space was clean, well-lit, and filled with movement—workers packing, labeling, and stacking boxes for dispatch. There was no doubt the business was moving serious volume. But as they walked through, the cracks in the system became obvious.

In one corner, pallets stacked with different types of packaging took up valuable space. Jars for individual customers. Large tubs for restaurant clients. Bulk bags for wholesalers. Each needed separate labeling, storage, and handling, creating unnecessary complexity.

Aminu picked up a small retail jar and then a large restaurant tub. “You’re running three businesses at once,” he muttered.

Kunle frowned. “What do you mean?”

Sule gestured at the stacks. “Retail is one type of business. Wholesale is another. Food service is a third. Each should have its own workflow, but you’re treating them the same.”

Kunle rubbed his temple. “I thought offering more options would make us more attractive to different buyers.”

Aminu shook his head. “Options are good, but not if they slow you down. If customers get their orders late or mixed up, they won’t care about options.”

Then Aminu gestured at the empty shelves along the far wall. “And this space—why is it unused?”

Kunle exhaled. “I got it for expansion, but we don’t need it yet.”

Sule crossed his arms. “Then that’s wasted rent. We could’ve used that money for something else.”

Aminu nodded. “More space means more costs—utilities, maintenance, insurance. You expand when your current space can no longer handle demand, not because you think you’ll need it someday.”

Kunle exhaled deeply. “I see it now. I got ahead of myself.”

Aminu clapped a hand on his shoulder. “You’re learning. The key is to grow in a way that strengthens your business, not stretches it too thin.”

Author’s Reflection

The Difference Between Growth and Scaling

Many business owners think that growth and scaling are the same thing. They’re not.

  • Growth means increasing revenue, but often at an equal or higher cost. If you double your staff, rent a bigger space, and spend more on marketing, your business is growing—but so are your expenses.
  • Scaling means increasing revenue without significantly increasing costs. You make more money using the same resources or by improving efficiency.

Kunle was growing, but he wasn’t scaling. He hired more people, rented a bigger space, and expanded his product line, but all of this increased his costs. His revenue was rising, but his profit margins were shrinking.

Before expanding, every business owner should ask:

✅ Is my business model ready for more demand?
✅ Are my core processes efficient?
✅ Am I adding expenses without a clear ROI?
✅ Will this expansion help me scale or just add complexity?

🚨 The Biggest Trap: The Shiny Object Syndrome 🚨

Business owners often fall for “shiny objects”—fancy offices, expensive tools, new product lines—without ensuring they actually solve a problem.

Before adding something new, ask: 1️⃣ Does this solve a real bottleneck? 2️⃣ Will it improve efficiency or just increase costs? 3️⃣ Can I track its impact on my bottom line? 4️⃣ If this doesn’t work, do I have a way to undo it?

The key lesson? Growth is good, but scaling is better.

Kunle is learning these lessons now. The question is—are you?

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