It’s almost paradoxical but some businesses can fail because of their growth. Yes, you heard right. Without a well thought out growth strategy in place, fast-growing businesses can crumble because of the many changes that accompany business growth.
On one hand, you have a boom in sales. On the other hand, you have to adjust and scale, which means inevitable organisational changes.
Most business owners dream of quick success but few understand the additional challenges.
A step-by-step strategy can help make it easier to handle and manage potential pitfalls that accompany a rapid expansion.
Companies often fall into the trap of defining short and long term goals but fail to plan for the period in between. It’s important that you map out the operational, financial, and human resource needs during any growth period. Simply put, there is no leaving growth to chance.
Focus on the systems
Businesses that experience fast growth must ensure they build scalable back-end systems for delivering services. By having an effective system of operations and administration, businesses can keep delivering in the face of quick growth.
This is especially true when it comes to adjusting your financial systems. Businesses that can swiftly implement formal financial mechanisms – such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) are in the long-term proven to be more successful.
Hire the right staff
Hiring the right staff is an absolute must as these are the people that will steer your company to success. This is particularly true when it comes to your leadership team. It’s crucial to implement a management team that can be both flexible and agile enough to adapt to the challenges of scaling. It’s imperative that you monitor the quality of new hires too as they will be required to take on evolving and broadening responsibilities and roles.
Once a company begins expanding, the quality of new hires becomes more critical than ever because each employee will be required to take on extra tasks and roles in order to put out fires, manage growth, and continue the same level of innovation that helped the company grow rapidly in the first place.
Our experienced team of financial advisers can help you create a business plan to help your business thrive no matter how fast things are moving.