If Peterson decides to remain in two niches, schools and churches, the only way he can expand is to move into other geographic areas. That means hiring a new architect who might be able to bring in work in another niche, or who has name familiarity in another geographic area. Right now it is hard to find qualified people, Peterson said. He recently ran a help wanted ad for three weeks with no favorable responses. Hiring more people brings risk.
All firms face the inevitable downturn in the economy - and the chore of laying off new hires.
Small firms know that even if they grow, the profit margin may not increase. But, according to Hall, some growth is necessary in order to serve clients well and give employees the opportunity to work on challenging projects. Besides, small firms have another advantage. Hall, who also specializes in medical work, can always team up with a larger firm in order to tackle bigger projects.