Texas Startup Blog: Web 2.0 and Social Media » Blog Archive » Why organic growth worked for Architel

Alexander Muse, John Moore, and a lot of others are spending a lot of time talking about “growing your business”.

I’m more prone lately to thinking, “how can I build a business that is sustainable, and provides an honest and long-term income”.  I don’t need to build Microsoft, and I don’t want the headaches.  I want to build numerous smaller companies that all have a stable income/revenue and can support a fixed number of employees for the long term.

What’s wrong with that? Why is everyone looking to hit grand-slams when a certain double will (in the long term) win the game?  Do we always need to win by ten points? 

Of course you can’t do this if you take other people’s money – they demand growth.  But if you could build a handful of companies that all kept people honestly employed and productive for the long term – wouldn’t that be just as good of a goal?

I’d rather bet on a team that gets ten doubles a game than one that hits an occasional grand slam.  Grand slams take a lot of luck and prior luck to pull off.  A double takes a bit of skill, but doubles are much more likely to happen than a grand slam.

I don’t know why I am using all the baseball references.  I don’t even like baseball.

John Moore is blogging about Edward Hess’ book, The Road to Organic Growth.  The idea is that there are two primary methods for growing your business a) buying a competitor and b) driving revenue growth through sales.  Hess uses comprehenisve statistics on 22 businesses that have succeeded by embracing organic growth.

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