From the outside, it can seem as if business growth is automatically a good thing. After all, isn’t getting more customers, making more sales, and generating more profit the whole point of running a business? The answer to that is, well, it depends. The ultimate goal may be to reach those targets, but if you don’t grow in a sustainable way, then your business growth may come back to haunt you. All successful businesses understand the importance of managing their business growth correctly. In this post, we’ll run through 5 tips to keep in mind if you’re facing a growth spurt.
By Team Savant
Image: Sable Flow
Hire At The Right Time
Whether your business can accommodate its growth will depend, in part, on the employees you have in place. A well-managed, high-functioning team can make all the difference to a business’s long-term prospects in general, but they’re especially crucial during times of growth.
Hiring at the right time is essential. It’s much more difficult to bring your employees up to speed when you’re managing a growth spurt. Hiring before that occurs is paramount.
Get a Handle On Your Finances
Growing businesses often see additional burdens placed on their cash flow. And cash flow troubles, as you may know, are a common reason for businesses running into difficulties that eventually result in their closure. Having a firm grip on your finances is key to experiencing trouble-free growth. If you haven’t already, then it’s recommended to hire an accountant — they’ll ensure that the financial and tax side of your operations are in a secure position, which will reduce the risk of running into difficulties further down the line. They can also help you to effectively respond to any unexpected growth that your brand may experience.
Scale Up The Right Way
You’ll already have working processes and operations in place. However, remember that just because they’re effective for your current level, that doesn’t mean that they’ll necessarily work when you’re a bigger business. You’ll need to scale certain aspects of your business in order to meet the new demands being placed on it. For example, you might need additional office space, servers, or more employees. Taking the time to think about the needs of your business before expansion is paramount for doing it the right way.
Be Adaptable
The road to the top is rarely linear. If your business is growing bigger, then it’s inevitable that you’ll run into problems from time to time. Having flexible, adaptable working processes can help you to take these issues in your stride. Pay particular attention to any issues raised by your employees — they’ll have intimate knowledge of the issues that could become big problems if left unchecked.
Stay Cautious — And Ask The Right Questions
Running into growth is a risky strategy that’s best avoided. Instead, businesses should approach growth with a degree of caution. It’s also important to ask the right questions about what you want from your growth, which will help determine whether there’s a reason to grow or you’re doing it just because you can.