Top View - Containers

When You Hit Capacity, Which Of These Two Ways Will Your Business Respond?

On one side of the spectrum, there’s launching a new venture and the struggle to find and land enough paying work to sustain our business. But, after we persevere long enough, we’ll hit a capacity wall. It’s at this point when we face two choices on how we grow. 

The first option is growing a team parlaying the increased demand with more people (or automation). The second approach involves increasing prices as a way to tame the demand and increase income. What are the differences in these approaches?

1 - Grow by Expanding 

With my marketing company, I chose the first option and we grew the team as needs and ambition grew. Our expansion began with my wife and cousin. An intern and salespeople followed. 

The unexpected downside of this approach was the burden and responsibility grew as did the team. While I thought a larger team would be easier to manage, the reality was quite the contrary. But, when I needed reprieve or support, I was not alone. 

2 - Grow by Charging More

As a freelancer, I’ve taken a contrasting approach since I’m not interested in building another marketing company. By increasing my hourly rate instead, there is a burden to act with more focus and deliver no-brainer results that far exceed my cost.

But as a solopreneur, the burden to deliver falls squarely on my shoulders. I’m both accountable for my actions, and I’m rewarded for the success. It’s a heavier mental weight to bear, but it’s also a richer experience when things go well. The downside is the risk to me and my family, should something go wrong. Since I’ve chosen this road, I’m also pursuing the diversification of my income by writing books and blogging actively.

A Deliberate Choice 

Both expanding or increasing rates are neither good or bad, they instead provide different benefits and challenges. We need to understand them so we can take the road that best equips us to achieve our goals. 

Have you thought about how you’ll handle the capacity wall? Which option will you choose?


Hero Photo by chuttersnap on Unsplash

Do you like the content on this website? Subscribe by email and get the latest posts when they're published.

Recent Articles

Grow Your Life With Jason Scott Montoya, Atlanta Georgia
Copyright © 2013-2019 | Interested in Working Together?

*Some links on this website are part of an affiliate program, which means I get paid if you click and purchase.

Do You Feel Stuck In Life?
Access six steps you can take to begin the process of getting unstuck. Fill out the form below and I'll redirect you to this resource.

Please let us know your name.
Please let us know your email address.

Live Better. Work Smarter.
Stories & Systems for Transforming Your Messy Life Into A Cycle of Flourishing.

Please let us know your name.
Please let us know your email address.

the jump book promoDo You Feel Stuck In Your Small Business?
Rebuild Your Entrepreneurial Hopes & Dreams.
Download the first two chapters for free and also access our small business resource center.

Please let us know your name.
Please let us know your email address.