Ooohhhh … that gorgeous slanted golden light that you only see in the fall has begun to shine on us here in our lovely part of the world. At right is one of the volunteer (ash?) trees that sprouted next to my driveway.

I’ve been thinking a lot about the concept of carrying capacity. In biology and environmental science, this applies to how many of a given species can be supported in a specific habitat. When a population grows beyond that area’s carrying capacity, something has to give: some individuals will die from starvation or lack of cover when the area can no longer provide enough food or shelter. Other species sharing that habitat will also be affected if their predators’ or preys’ numbers are out of balance.

So, as this year winds down, I am considering how one’s business might be described as a habitat, and applying the concept of carrying capacity to that habitat. Is something out of whack with your company? Too few resources (human or material) to be able to keep up with demand? Or, migration out of your habitat because your clients can’t find what they need there (resulting in a loss of business)? Maybe one or two important clients eat up the majority of your time, putting you in a position to have to turn away work from other, smaller or new clients, leaving you vulnerable if those larger contracts were to go elsewhere?

Many of us adjust rates and rethink the focus of our business as we begin to look to the new year. If your business has exceeded a healthy capacity, consider your options now so that 2006 can be both personally and financially rewarding. Whether you decide to raise your rates, “relocate” some of those clients whose needs go beyond what you can comfortably provide, or add to your staff, it is the time of year to reflect on what is and isn’t working.