Mark Bouris: How to Grow a Business the Right Way

There comes a point in every successful business when momentum starts to build. The phone rings more often, enquiries increase and opportunities begin appearing faster than you can manage on your own. When that happens, the conversation naturally turns to growth.

But growth should not always mean expanding as fast as possible. The real goal is smart growth. That means growing in a way that strengthens the business rather than putting it under pressure or exposing it to unnecessary risk.

Many owners assume scaling simply means getting bigger, hiring more people, and increasing output. In reality, smart growth is about building a business that can handle increased demand without losing control of operations, culture, or finances.

For that to happen, a few foundations need to be in place:

• First, businesses need strong systems. If everything depends on the owner making every decision or overseeing every task, the business will struggle to grow. Systems create consistency and allow work to be repeated efficiently, which means the business can operate smoothly even as demand increases.
• Second, growth requires a capable team. Smart growth is not possible without people you trust. Delegation becomes essential, and as the business expands, leaders inside the organisation need to take ownership of key areas so the responsibility is shared rather than concentrated with the owner.
• Financial discipline is equally important. One of the most common mistakes business owners make is spending ahead of revenue when growth begins. Debt can help accelerate expansion, but if it is not carefully managed it can quickly create pressure on cash flow and destabilise the business.
• Technology is also becoming a major advantage. The smartest operators are using technology and AI to remove inefficiencies, automate repetitive work, and make faster, more informed decisions. Instead of simply adding more staff to handle growth, they use tools that improve productivity across the organisation.

I recently spoke to someone on my podcast The Mentor who built a successful timber furniture business. As demand for his products increased, he decided to expand quickly to keep up with orders. To manage supplier payments and production, he took on significant debt.

Then interest rates rose and the economic environment shifted during COVID. Cash flow tightened and the pressure on the business became too much to sustain.

Looking back, he admits he should have been far more cautious about the level of debt he was taking on. It was a tough lesson, but it completely changed how he thinks about growth today.

Another mistake during that period was trying to control every part of the business himself. Instead of trusting the leadership team he had brought in, he continued to carry too much of the responsibility. In hindsight, he regrets not empowering one of his senior people earlier, which could have helped stabilise the business during its expansion.

His company eventually became one of the 6,200 businesses that went insolvent in Australia during 2025.

The reality is that the business environment can be tough, which is why smart growth matters so much. Fast growth might attract attention and headlines, but sustainable growth is what builds businesses that last.