Skip to Content
  • Offices

    Offices

    North & Latin America
    • Atlanta
    • Austin
    • Bogota
    • Boston
    • Buenos Aires
    • Chicago
    • Dallas
    • Denver
    • Houston
    • Los Angeles
    • Mexico City
    • Minneapolis
    • Monterrey
    • Montreal
    • New York
    • Rio de Janeiro
    • San Francisco
    • Santiago
    • São Paulo
    • Seattle
    • Silicon Valley
    • Toronto
    • Washington, DC
    Europe & Africa
    • Amsterdam
    • Athens
    • Berlin
    • Brussels
    • Copenhagen
    • Dusseldorf
    • Frankfurt
    • Helsinki
    • Istanbul
    • Johannesburg
    • Kyiv
    • Lisbon
    • London
    • Madrid
    • Milan
    • Munich
    • Oslo
    • Paris
    • Rome
    • Stockholm
    • Vienna
    • Warsaw
    • Zurich
    Middle East
    • Doha
    • Dubai
    • Riyadh
    Asia & Australia
    • Bangkok
    • Beijing
    • Bengaluru
    • Brisbane
    • Ho Chi Minh City
    • Hong Kong
    • Jakarta
    • Kuala Lumpur
    • Manila
    • Melbourne
    • Mumbai
    • New Delhi
    • Perth
    • Seoul
    • Shanghai
    • Singapore
    • Sydney
    • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Subscribe
  • Contact
  • Chile | Español

    Select your region and language

    Global
    • Global (English)
    North & Latin America
    • Brazil (Português)
    • Argentina (Español)
    • Canada (Français)
    • Chile (Español)
    • Colombia (Español)
    Europe, Middle East, & Africa
    • France (Français)
    • DACH Region (Deutsch)
    • Italy (Italiano)
    • Spain (Español)
    • Greece (Elliniká)
    Asia & Australia
    • China (中文版)
    • Korea (한국어)
    • Japan (日本語)
  • Saved items (0)
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Industries
    Main menu

    Industries

    • Aeroespacial y Defensa
    • Agroindustria
    • Químicos
    • Construcción e Infraestructura
    • Productos de Consumo
    • Servicios Financieros
    • Salud y Ciencias de la Vida
    • Maquinaria y Equipo Industrial
    • Medios y Entretenimiento
      Industries
      Medios y Entretenimiento
      • Media Lab
    • Metales
    • Minería
    • Petróleo y Gas
    • Papel y Empaque
    • Private Equity
      Industries
      Private Equity
      • Due Diligence
      • Exit Planning
      • Firm Strategy & Operations
      • Portfolio Value Creation
    • Sector Público y Social
    • Retail
    • Tecnología
    • Telecomunicaciones
      Industries
      Telecomunicaciones
      • Capital Expenditure
      • Telco Digital Transformation
    • Transporte
    • Viajes y Turismo
    • Servicios Públicos y Energías Renovables
  • Consulting Services
    Main menu

    Consulting Services

    • Customer Experience
    • Sustainability
    • Innovation
    • M&A
    • Operations
    • People & Organization
    • Private Equity
    • Sales & Marketing
    • Strategy
    • AI, Insights, and Solutions
    • Technology
    • Transformation
  • Digital
  • Insights
    Main menu

    Insights

    • Industry Insights
    • Services Insights
    • Bain Books
    • Webinars
    • Bain Futures
    View all Insights
    Featured topics
    • Tariff Response
    • Artificial Intelligence
    • Thriving in Uncertainty
    • Executive Conversations
    • Macro Trends
    • Private Equity Report
    • M&A Report
    • Healthcare Private Equity Report
    • Paper & Packaging Report
    • Technology Report
    • CEO Insights
    • CFO Insights
    • COO Insights
    • CIO Insights
    • CMO Insights
    View all featured topics
  • About
    Main menu

    About

    • What We Do
    • What We Believe
    • Our People & Leadership
    • Client Results
    • Awards & Recognition
    • Global Affiliations
    Further: Our global responsibility
    • Sustainability
    • Social Impact
    • World Economic Forum
    Learn more about Further
  • Carreras
    Main menu

    Carreras

    • Trabaja con Nosotros
      Carreras
      Trabaja con Nosotros
      • Find Your Place
      • Nuestras Áreas de Trabajo
      • Equipos Integrados
      • Estudiantes
      • Internships & Programs
      • Eventos de Reclutamiento
    • La Vida en Bain
      Carreras
      La Vida en Bain
      • Blog: Inside Bain
      • Historias Profesionales
      • Nuestra Gente
      • Dónde Trabajamos
      • Apoyando tu Crecimiento
      • Grupos de Afinidad
      • Beneficios
    • Impact Stories
    • Nuestro Proceso
      Carreras
      Nuestro Proceso
      • Qué Esperar
      • Entrevistas
    FIND JOBS
  • Offices
    Main menu

    Offices

    • North & Latin America
      Offices
      North & Latin America
      • Atlanta
      • Austin
      • Bogota
      • Boston
      • Buenos Aires
      • Chicago
      • Dallas
      • Denver
      • Houston
      • Los Angeles
      • Mexico City
      • Minneapolis
      • Monterrey
      • Montreal
      • New York
      • Rio de Janeiro
      • San Francisco
      • Santiago
      • São Paulo
      • Seattle
      • Silicon Valley
      • Toronto
      • Washington, DC
    • Europe & Africa
      Offices
      Europe & Africa
      • Amsterdam
      • Athens
      • Berlin
      • Brussels
      • Copenhagen
      • Dusseldorf
      • Frankfurt
      • Helsinki
      • Istanbul
      • Johannesburg
      • Kyiv
      • Lisbon
      • London
      • Madrid
      • Milan
      • Munich
      • Oslo
      • Paris
      • Rome
      • Stockholm
      • Vienna
      • Warsaw
      • Zurich
    • Middle East
      Offices
      Middle East
      • Doha
      • Dubai
      • Riyadh
    • Asia & Australia
      Offices
      Asia & Australia
      • Bangkok
      • Beijing
      • Bengaluru
      • Brisbane
      • Ho Chi Minh City
      • Hong Kong
      • Jakarta
      • Kuala Lumpur
      • Manila
      • Melbourne
      • Mumbai
      • New Delhi
      • Perth
      • Seoul
      • Shanghai
      • Singapore
      • Sydney
      • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Subscribe
  • Contact
  • Chile | Español
    Main menu

    Select your region and language

    • Global
      Select your region and language
      Global
      • Global (English)
    • North & Latin America
      Select your region and language
      North & Latin America
      • Brazil (Português)
      • Argentina (Español)
      • Canada (Français)
      • Chile (Español)
      • Colombia (Español)
    • Europe, Middle East, & Africa
      Select your region and language
      Europe, Middle East, & Africa
      • France (Français)
      • DACH Region (Deutsch)
      • Italy (Italiano)
      • Spain (Español)
      • Greece (Elliniká)
    • Asia & Australia
      Select your region and language
      Asia & Australia
      • China (中文版)
      • Korea (한국어)
      • Japan (日本語)
  • Saved items  (0)
    Main menu
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Industries
    • Industries

      • Aeroespacial y Defensa
      • Agroindustria
      • Químicos
      • Construcción e Infraestructura
      • Productos de Consumo
      • Servicios Financieros
      • Salud y Ciencias de la Vida
      • Maquinaria y Equipo Industrial
      • Medios y Entretenimiento
      • Metales
      • Minería
      • Petróleo y Gas
      • Papel y Empaque
      • Private Equity
      • Sector Público y Social
      • Retail
      • Tecnología
      • Telecomunicaciones
      • Transporte
      • Viajes y Turismo
      • Servicios Públicos y Energías Renovables
  • Consulting Services
    • Consulting Services

      • Customer Experience
      • Sustainability
      • Innovation
      • M&A
      • Operations
      • People & Organization
      • Private Equity
      • Sales & Marketing
      • Strategy
      • AI, Insights, and Solutions
      • Technology
      • Transformation
  • Digital
  • Insights
    • Insights

      • Industry Insights
      • Services Insights
      • Bain Books
      • Webinars
      • Bain Futures
      View all Insights
      Featured topics
      • Tariff Response
      • Artificial Intelligence
      • Thriving in Uncertainty
      • Executive Conversations
      • Macro Trends
      • Private Equity Report
      • M&A Report
      • Healthcare Private Equity Report
      • Paper & Packaging Report
      • Technology Report
      • CEO Insights
      • CFO Insights
      • COO Insights
      • CIO Insights
      • CMO Insights
      View all featured topics
  • About
    • About

      • What We Do
      • What We Believe
      • Our People & Leadership
      • Client Results
      • Awards & Recognition
      • Global Affiliations
      Further: Our global responsibility
      • Sustainability
      • Social Impact
      • World Economic Forum
      Learn more about Further
  • Carreras
    Popular Searches
    • Agile
    • Digital
    • Strategy
    Your Previous Searches
      Recently Visited Pages

      Content added to saved items

      Saved items (0)

      Removed from saved items

      Saved items (0)

      WSJ's The Experts

      Why Growing Small Businesses Should Zero-Base Everything

      Why Growing Small Businesses Should Zero-Base Everything

      Only a few capabilities truly matter to your customers.

      By James Allen

      • min read

      Article

      Why Growing Small Businesses Should Zero-Base Everything
      en

      This article originally appeared on WSJ's The Experts.

      If you need funds to get your business to the next level—to launch a new product, expand to a new region, serve a new customer segment—you might not need to go hat in hand to a venture capitalist or banker. Instead, look inside your business for all the capital being spent on distractions.

      Owners of micro-companies get this. They are always short of cash, trying to figure out how to free up resources from one activity so they can redeploy to a more important activity.

      But as companies grow, this idea gets lost. It isn’t that growing companies succumb to bureaucratic waste, but rather to a more insidious temptation: the desire to excel in all programs and all capabilities.

      In reality, only a few capabilities truly matter to your customers, which means that most capability-building is a waste of time. If a particular capability isn’t the reason that your customers choose you over your competitors, then it is fine—even desirable—to be just “good enough.” If you have the discipline to focus your internal resources on the things that really matter, then you may not need as much external capital as you thought.

      Changing these behaviors requires that companies “zero-base” everything they do, meaning they regularly examine every process with a fresh eye and ask: “If we could start over, would we want to do it this way?”

      Some employees find this exercise threatening. But in fact, zero-basing creates opportunity. If the company can figure out how to do something smarter and in a simpler way, it can move people to more difficult and interesting challenges in the highest-potential areas. That keeps everyone stretched.

      Want more funds for your company? Pave the way for zero-basing and penalize anyone, especially managers, who traps resources. In most companies, rewards typically flow to people who make internal functions larger and more complex, demanding more resources, the people who say yes to seemingly “clever” ideas. Make it your role to reward those who simplify your company and are brave enough to stop activities altogether.

      James Allen is co-leader of the global strategy practice at Bain & Co.

      Authors
      • Headshot of James Allen
        James Allen
        Advisory Partner, London
      Related Consulting Services
      • Strategy
      Strategy
      James Hadley: Strategies Beyond Scale

      What established market leaders should do to avoid complacency.

      Read more
      Sales and Marketing
      Bought Not Sold: Marketing and Selling to Digitally Empowered Business Customers

      Traditional marketing and sales models have reached their expiration date.

      Read more
      James Root: Developing-Market Companies and Operating Models for Growth

      Successful developing-market companies are able to adapt their operating models to their strategies as their organizations evolve.

      Read more
      Strategy
      Six Threats Demand a New Playbook for Banks in Wealth and Asset Management

      AI, direct-to-consumer models, and the return of local priorities are redrawing industry lines.

      Read more
      Strategy
      Compete, Evolve, Compete Again

      What does it really take to stay relevant when the world refuses to stand still?

      Read more
      First published in enero 2016
      Tags
      • Strategy

      How We've Helped Clients

      Jump-starting innovation for a telecom solutions provider

      See more related case studies

      New products propel profitability for metals manufacturer

      See more related case studies

      An auctioneer makes a winning online bid

      See more related case studies

      Want to continue the conversation

      We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results

      Bain Insights. Our perspectives on critical issues global businesses face in today's challenging environment, delivered monthly.

      *I have read and understand Bain’s Privacy Notice.

      Please read and agree to the Privacy Policy.
      Bain & Company
      Contact us Sustainability Accessibility Terms of use Privacy Modern Slavery Act Statement Cookie Policy Sitemap Log In

      © 1996-2026 Bain & Company, Inc.

      Contact Bain

      How can we help you?

      • Business inquiry
      • Career information
      • Press relations
      • Partnership request
      • Speaker request
      See all offices