While every entrepreneur wants their business to grow, when that growth comes too quickly it can lead to a variety of problems. Coping with rapid growth can actually damage your company if tackled incorrectly. Some of the unexpected issues that you face when it comes to too-rapid growth can have such a negative impact; you may even face closure as a result. While growth is always regarded as a positive, failing to understand the dangers of it is the fastest way to see your business fail. Here are the issues that will affect your business during fast-growth periods, and how to tackle them so that your business is not at risk.
If you suddenly have more customers to satisfy or more products to purchase, you can start running into cash-flow problems. The financial side of running a business is often the most challenging, and rapid growth can make it exponentially harder. The key to tackling the cash-flow issue of unexpected growth is to plan for it. Set a realistic plan and series of goals to reach, and never commit to fulfilling orders that you know you can’t meet. Make sure that you have an emergency fund in place to deal with these emergencies, and your business will be much safer.
If your expansion is coming much faster than anticipated, then your operational efficiency is going to be affected. Flaws will quickly become apparent, and you may spend more of your day putting out fires than actually doing any productive work. Taking the time to redesign workflow processes or hiring new people can lead to their own issues, and your business will be much more vulnerable during these times. Never forget that while growth is good, if you fail to meet expectations with your clients or suppliers, your business reputation will suffer. It is much better to turn down orders rather than run the risk of providing a sub-par service.
One of the areas of your business that can take the brunt of your increased workload is your technology. There are a seemingly endless number of apps, software, and hardware available in the modern age that can help your business in any number of ways. Ideally, you want your IT team to scale your IT demands in accordance with your growth, but if you haven’t structured your tech needs correctly, then you can run into problems. Look at companies who can help you to build your own managed IT support package for better efficiency. You want an IT package that is designed around your business model. If you try to force your business to fit into the constraints of an already existing IT infrastructure, then efficiency will be damaged.
If your business starts to become more successful than you could ever dream, don’t panic. While there are risks, making sure that you proceed at a realistic pace is going to be vital. Don’t worry about turning down purchase orders either. Use them as an opportunity to highlight the popularity of your product, and start setting up a waiting list. Your business might even grow stronger as a result of the inherent dangers of too rapid growth.