Rapid business growth sounds great. Who doesn’t want their business to grow and succeed? However, rapid growth often comes with a myriad of problems and, if mismanaged, it can even harm your business financially.
There’s no reason to fear rapid growth; you just need to know how to handle it properly so that your business reaps the benefits, rather than creaking under the pressure.
Let’s take a look at how to handle rapid growth so that you can take your business to the next level - and beyond.
#1 - Create a Plan
Fail to prepare, prepare to fail, as they say. Creating a plan to handle rapid business growth is important. You may already have a business plan in place, but rapid growth changes everything and so it’s time to create a new blueprint for how to proceed.
When creating a growth plan, you need to look at what is going to break in your business as it continues to grow. Will you need more team members, a more advanced IT infrastructure, a larger workspace, more equipment or even to bid goodbye to clients that are no longer a good fit for your evolving business?
Remember: plan for the business you want, not the one that you currently have.
#2 - Calculate Working Capital Needs
Turnover and profit are different, so increasing sales don’t always mean better margins. You need to look at your spending to see whether or not your current rate of growth is sustainable and, if not, it’s time to make some changes.
Of course, sometimes growth requires you to temporarily spend more than you make, but it’s important to get an idea of how much working capital you will need to sustain your business in the long-term.
#3 - Streamline Processes
As your business grows, your workload increases. You will need to hire more staff, but simplifying and streamlining processes can reduce some of that need and help you to maximise your current resources.
Start by creating a blueprint of all of the tasks in your business and eliminating those which are no longer necessary. You should also look at what you can automate in order to save time and manpower. Task to automate include:
● Expense tracking
● Posting on social media
● Lead generation
● Lead management
● Email marketing
● Data backups
For example, using a cloud-based customer relationship management (CRM) system could mean fewer staff members are needed to answer phones and send follow-up emails since everything is now automated.
#4 - Hiring Contractors and Freelancers
Hiring contractors and freelancers can help you to support rapid business growth without increasing your overheads. Temporary staff bring expertise that you may not have in-house; they also allow you to focus on your core competencies while someone else takes care of the rest.
If resources are tight, outsourcing to freelancers and contractors can be a great way to test out new roles before committing to a full-time hire.
It’s also important that you get your hiring processes in place early, so that you can hire quickly when the need arises. To do this, create an ideal candidate avatar for each role and list places where they could potentially come from such as referrals or job boards. Then get your hiring process in place so that you can quickly find the right candidate.
Rapid growth in your business is exciting, but can also be overwhelming. The key to success with rapid growth is planning ahead and knowing how best to handle the challenges that come with it. It’s important for you to have a plan in place from the very beginning of your rapid growth phase so that you can successfully navigate through these changes and reap all of the benefits.