6 Times When Bigger Isn’t Always Better

Not everything in life needs to be big. Sometimes, reaching a certain level of height can drain your savings and become destructive to your lifestyle. Society may market the statement “bigger is better”. We seem to be obsessed with having tall buildings, busy airports, or large homes. This obsession with growth applies to businesses too.

Growth is not always good for an entrepreneurial venture. To survive and thrive as a growing business, entrepreneurs must change their business strategies and improve the way they run their business. If they do not change the way they run things, the odds of the business surviving the trials of growth are not very good.

Let this article illustrate the times when bigger is not always better.

#1: IN GROWING YOUR BUSINESS

If you grow your business solely based on your aspirations, you can create a business that is an intentional reflection of the lifestyle you desire. Remember that success in life should be so much more than simply growing a company and making money. Creating redundancies and having unnecessary complexities are just some of the consequences of growth.

When traditional large companies have a problem, they have to hire more people and build complex infrastructures to support more employees and processes. Thanks to the opinions and demands from board members, investors, and other departments, growth makes it increasingly challenging to get simple things done efficiently.

#2: IN SELECTING YOUR PROJECTS

Since you aim to be the biggest firm in Singapore, you tend to accept all the projects that come your way. One advantage of being small is having more freedom and flexibility in your work. As a small company, you are not enveloped with expectations and overhead. In contrast, bigger companies need to hustle to thrive and survive.

#3: IN INVESTING ON PRIVATE EQUITY FUNDS

When it comes to fund size, bigger is not always better. Higher fees put more money in the managers’ pockets, but that does not guarantee that investors share in the upside. Expectations for larger returns increase as investors pay more in fees. However, larger funds do not necessarily bring in larger returns.

#4: IN RENOVATING YOUR HOME

A bigger home means you must spend more time and money on renovating and maintaining it. By revamping the existing space, you will be responsible for the cost of changing the structure to suit your needs. You will also be responsible for upgrading the existing home to follow the current health and safety codes. Your budget will depend on how extensive the renovations are. Generally, the older the building, the more it will cost you to renovate.

#5: IN BUILDING YOUR WEALTH

Putting a large amount of money in your savings account may seem like the most practical thing to do. However, money held in savings accounts has not grown much in the previous years due to historically low interest rates. With inflation running high, your savings are at risk of losing value in “real” terms as you will be able to purchase less with your money.

For instance, inflation averages 3% over the next 5 years. What costs you S$1,000 today would cost you S$1,159.27 in the year 2026. Putting S$1,000 in your savings account today with 0.5% interest will earn you S$25.25 over the same period. Thus, you will inevitably lose about S$134.02.

#6: IN KEEPING UP WITH OTHERS

“The big question about how people behave, is whether they’ve got an inner scorecard or an outer scorecard. It helps if you can be satisfied with an inner scorecard.” – Warren Buffett

Aiming for greater things just to keep up with the success of others is harmful to your wellbeing and your wallet. You can be anything, but you cannot be everything. When we compare ourselves to others, we often compare their best features against our average ones. The unconscious realization that we are not better than others can become self-destructive.

Image Credits: unsplash.com

Instead of aiming to have the biggest funds, grandest home, and largest projects, you can realistically push for what works for you best!

Sources: 1,2,3 & 4

 

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How To Train Your Replacement

April 2021 marks my fifth year in the company that I have grown to love. As I explore other possibilities and leave my position as a directress vacant, it is my responsibility to train my replacement. I realized the importance of ensuring that someone else was able to do my job early on. I took the liberty to help my fellow directresses too.

It was not because I had brilliant foresight. Rather, it is due to the fact that I had an unpleasant experience during my turnover process. The person who was supposed to mentor me did not want to leave her post. Her bitterness was evident as she prolonged her exit. Nonetheless, I took it as an opportunity to learn from her. I did not want to make my replacement feel the same thing. Expanding the knowledge of others around you is necessary to keep the business moving forward.

Training your replacement does not have to be difficult or awkward. It just needs to be well-thought-out. Do you still remember the first time you picked up a task that was unfamiliar to you? The rollercoaster of emotions you felt on your first day as the boss is something that your apprentice will go through. You need to guide your replacement through methods or instructions on how to complete the tasks.

Start by providing a list of duties or a training manual. I, for one, have a copy of the Directress Training Manual. It is a comprehensive guide divided into several parts such as handling parents’ concerns. In addition to including the job description and important forms, you need to provide detailed instructions for each task. Allow the person to follow along and ask questions whenever necessary.

You read that right! You need to be prepared to answer questions and clarify instructions. Do not assume that your replacement will be able to absorb everything in a day. They will require both verbal instruction and hands-on experience. If he forgot a step during training, patiently remind him of what he missed.

Demonstrate how the duties are done. Watching you go through the steps will help the person feel the depth of your instructions. Make them feel comfortable by letting them seat down and write down notes. As long as you are still receiving paychecks from the company, you are part of the team.  Stay professional at all times.

Arrive on time and dress accordingly to the company’s policy. Do not make your replacement feel that you do not care because you are leaving soon. Instead, become a positive role model to him or her. Be prepared with today’s agenda and monitor the trainee. Lastly, introduce him to the people in your office.

Image credits: pixabay.com

Show where your supplies, restrooms, and documents are. Tour him in the office and introduce him to your co-workers. This simple gesture can mean a lot. Let your trainee know what you are expecting to achieve within the day and impart your knowledge on the workplace culture. These details will help him as he adjusts to the new position.

Best of luck!

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