The challenges faced by fast-growing businesses

Many businesses find the first few years challenging and, depending on the nature of the business and the economy, often struggle to survive, especially if there has been a failure to plan properly.

But, in a small number of cases, a business can grow at an unexpected rate during its infancy. While this might seem like the ideal situation, managing such extreme growth also brings a number of challenges.

Tax returns

Filling in tax returns can be a slog for many businesses, regardless of how big or small. Hitting the deadline, ensuring there are no errors and accounting for every invoice can be daunting, especially for companies who are growing at an unexpected rate and are time poor.

One solution is to have an accountant take care of this side of the business, but if you’d rather keep your tax filing in-house, you could consider streamlining your finances by making your tax return process digital via e-invoicing. This can help simplify the paperwork and help you regain control of the financial aspects of your business.

Decrease in quality standards

If your business spirals out of control, you might not have enough time or resources to deal with the demands of clients or customers. You could find your quality of products and customer service slipping, simply because you’re unable to manage the uptick in sales.

While in the short-term there’s not an ideal solution, you might look to hire more staff and create a better forecasting system so you can better predict sales and demand in the future.

Employee morale declines

If significant pressure is placed on your workforce, then morale is likely to fall fairly fast. This is especially true if employees are being asked to work extra hours for the same pay or to increase their rate of productivity.

Look for ways to reward employees, whether that’s through salary or by offering more flexible working. It’s also important to maintain open communication channels with staff so they feel as though they’re being listened to and are just as important as managers.

Taking on too much work

No business owner wants to reject the offer of work but, sometimes, it can be the most sensible thing to do. If you have little in the way of resources to fulfil an order, for example, both the customer and staff will be left frustrated and unhappy.

Rather than simply saying no, suggesting a date in the future when you know you’ll have the time and resource to manage their needs is a good alternative.

Lack of leadership

When it’s all hands-on-deck, managing and leading tends to take a back seat. This can create a disruptive environment for employees and leave business owners not knowing how to handle the day-to-day tasks.

Creating an organised work structure with competent leaders can mean the difference between success and failure.

Finally, it’s vital to not to let workplace health and safety standards slip when dealing with unprecedented growth as this can create a range of other, significant issues.

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