Many Americans who want to start their own business share the dream of owning the “next big thing.” Some startups see nearly overnight success, and this is the model that nearly everyone wants to emulate.
But growing and maintaining a business is not easy, even if you have a great product and a lot of customer interest. Expanding can be dangerous if it happens too quickly or in ways that are unsustainable. Perhaps one of the best examples of this problem is the controversial solar energy company that is now in the midst of declaring bankruptcy: SunEdison Inc.
Renewable energy technology is in high demand, and SunEdison seemed up to the challenge of meeting that demand. The company undertook an aggressive growth strategy. How aggressive? Last November, SunEdison officials said that the company had expanded its project pipeline by about 75 percent in just one year.
According to Business Insider, SunEdison’s strategy involved significantly underbidding rival companies on projects and going on an “acquisition spree.” Now that the company is in bankruptcy proceedings, the future of major solar projects has become uncertain.
While the future of the company is uncertain, it seems likely that SunEdison could recover from bankruptcy and go on to become profitable again. And its story could serve as an important reminder to any entrepreneurs out there. If you have a good product or service to offer and demand is steady, bankruptcy does not need to be the end of your business. Instead, it could serve as a course correction, allowing you to resolve debt issues and get back to doing what you do best.
