Why Size Matters

When you outgrow smaller rivals and must compete with big corporations for the first time, you’re entering a tricky stage of growth called No Man’s Land.

As cautionary tales go, Robert Schell’s is a good one. Back in 1999, Schell owned Avico, a business in suburban Chicago that provided e-consulting services. Within a few weeks of finding out that the company had made the Inc. 500, Schell realized that he had expanded too fast and that the market for his services had cooled. He was forced to close down Avico. Even as he negotiated with creditors to avoid bankruptcy, however, Schell was laying the groundwork for a comeback company. That business, Prism Innovations, is No. 126 on this year’s list.

Schell is thrilled to be back, but as someone who’s experienced victory followed so quickly by agonizing defeat, he has a unique perspective on the achievement. "If a company doesn’t have the right foundation, it can fall apart like a house of cards," he says.

From: Inc. Magazine By: Daniel McGinn

Full Story: http://www.inc.com/magazine/20041015/why-size-matters.html

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Many thanks to John Masterson of http://www.Modwest.com for passing this along.