Congratulations, the first few milestones have been overcome and the startup has finally started to see an increase in numbers across the board. As these numbers start to rise and pull in more and more business, it’s easy to get snowballed out of business. Rapid growth is both a blessing and a curse as it can help business skyrocket but also make it buckle under the sheer amount of pressure that comes along with success. This is why looking ahead and properly dealing with the impending issues is crucial to keep a business healthy and afloat.
Small business is getting bigger: How to Cope with Rapid Growth:
Once a business has started to show the first signs of growth, owners are encouraged to take a step back and look ahead. Catching signs of possible expenses and complications beforehand will have a huge impact on how a situation is handled. Gauging the company’s financial and managerial needs early on will help define the path a company is on and will give it ample time to correct itself if needed. It is considered good practice to take the time to write everything down and get the full picture before taking any other action.
Don’t forget about your customers:
A common thing associated with company growth is the neglect of customers. Once revenue starts coming in, it can be all too easy to forget about customer needs. Customer satisfaction is the basis of what brought a company to this point and it can just as easily tank the entire thing in one fell swoop. Naturally, the increase in business will make keeping up with them a much harder task, but it is still something we signed up for and needs to be done. It doesn’t matter if it’s 10 customers or 10000, understanding their needs cannot be put on the back burner.
Don’t let it go to your head:
Building on the previous point, negligence usually starts to rear its ugly head as cash flow increases. The influx of money can make it incredibly tempting to start overspending and investing every which way. It is precisely this mentality that should be avoided, rapid growth does not hold any guarantees, nor is it enough to justify spending everything that has been earned. Use any extra cash to set up a nest egg in case of anything that might try to derail the business. This provides a safety net and gives owners a real estimate of how much they can actually spend at any given time.
Provide staff with more resources:
As the business grows, so will the workload. It is important to retain the employees that helped raise the startup from the dirt, so managing the amount of work on their plate is absolutely necessary. When a realistic spending budget has been made, investing in the team is the next logical step. This can be achieved by either providing them with more resources and better tools to work with or taking on newcomers to help ease the burden, whichever is more feasible at the time. Keeping the workload manageable will ensure that people stay and never get burned out.
While on the topic of taking on new people, it is important to address the elephant in the room – moving to a bigger office. It’s an unavoidable aspect of any business and it is a costly affair but provides every employee with enough space to function instead of cramming them in a basement. When moving, it is important to store any excess equipment for safekeeping, for example, there are several quality yet supereasy storage in Perth. Whatever the current company needs may be, there is no telling what the future might bring, this is why a packrat mentality is preferred. It’s much easier to clean office equipment later on than to pawn it off and force yourself to invest in new supplies later on.
Look up refinancing:
If already familiar with the term, most people will associate this with companies facing financial difficulties. However, refinancing is a great tool to free up the funding needed to pursue new business ventures. This boost can help startups deal with the new onslaught of customer demands and the need for resources while letting the company grow unhindered. As long as the approach is right and the bank doesn’t decide to put a wrench in the whole thing, it should be considered as a good option to stimulate further growth and help cover ever-increasing costs.
One step at a time:
Dealing with substantial growth can be a challenge, to say the least. A huge boom in business has and will continue to catch many people off-guard, jeopardizing everything they’ve worked to build. However, with the proper preparation and the right mentality when it comes to customers and spending, people are able to get to a point where they can enjoy the fruits of their labor. It’s just a matter of taking a deep breath and going at it one step at a time