Growth versus Expansion

Often businessmen mistake expansion for growth. One thing is sure; expansion is not equal to growth. What these businessmen mean is up-scaling. But up scaling does not necessarily read growth.

Growth and expansion could not be more different. Growth is mostly seen as a result (consequence). However, before being a result, it is a process (cause) with its proper laws, nobody can alter. Growth is per definition a biotic process. Non-biotic entities or systems do not grow. Let me put it in simple words; can one make a chair grow? Even after hosing it? Or even after nourishing it? Off-course not. And there is a simple reason for it; there is no life in the chair molecules. Growth is entirely based on the law of multiplication. Whatever is multiplied has the same characteristics (genes) as what it is multiplied of. That is how growth works. No multiplication – no growth.

Expansion contrarily is not based on multiplication. What happens with expansion is that the original structure is blown up to an exponent of its original size. Molecules can increase their mass, however they cannot multiply. The increase in size is achieved by reducing the cohesion of the molecules.

In case of indiscriminate expansion, we see a self-fulfilling prophecy in action. If expansion was calculated from a company’s start, chances are that the expansion will be stable. However, in most cases expansion was not part of the original setup, but a decision along the journey.

Let’s look at the downside of expansion. Everything – and I mean everything, has a weak spot by principle (also a strong spot). With expansion one benefits from the strength in order to expand, though in the same time concentrating all the pressure and stress on the weak spot. The expansion will continue until the weak spot can no longer hold and the whole system collapses.

Biotic growth only occurs when the insufficiencies are nourished and strengthen. One cannot benefit from the strength. In fact the insufficiencies are slowing down the whole process immediately. From the very beginning the insufficiencies will have their affect on the growth expansion. Opposite to expansion, only by increasing the resistance growth will occur.

With expansion this is different. The size will increase despite the weak point, not slowing it down. If you don’t know what the critical point is, the collapse will be abrupt and final. Many companies don’t know what the critical point of their expansion is. As long as the expansion increases their size, benefiting from their strengths, they will continue the expansion, and obviously concentrating more stress on the weak points until total and final collapse.

Companies who adopt biotic growth will see gradual increase in size, leaving enough time to intervene and to strengthen the company from within.

The current economy has collapsed because of the indiscriminate expansion fever, concentrating all the stress of the expansion on the weakest point. The weakest point were the “toxic mortgages”. The collapse was structurally present and it was just a matter of time before the actual collapse kicked in. However I believe that the crisis in this proportion has been engaged by a series of expansion models depended on each other. With a chain of expansion models, once one system collapses, the pressure and stress on the other systems increases and the breaking point will induce collapse even more rapidly, like a domino.

No economic model is indestructible, nor the expansion nor biotic model. All systems have their weaknesses and if not taken into account, they will ultimately collapse. The biotic business model requires a totally different mindset in order to generate results. You must be a cultivator in order to generate growth. Only cultivators are successful in growth. Always identifying and nourishing what the company is most lacking of. In fact the biotic system only works by releasing the pressure from the weak points over and over again.

The current crisis has the benefit of confronting us with what didn’t work. Now there will be enough openness to consider other paradigms like biotic business growth. Indiscriminate expansion has led to indiscriminate collapse.

When you come to think of all this, is not more than come sense, simple wisdom. Though when it comes down to making more and more money, wisdom and common sense take a vacation.