When you’re an entrepreneur, and you start a business, your objective is explosive growth, right?
That may be the case, and growth is great, but it can come with its own set of struggles. When businesses grow too quickly, and they aren’t prepared it can be as problematic as not growing enough. It can be difficult to keep up with demand, and service and products can start to suffer. It can also be tough for business owners to find the employees they need for rapid growth.
The following are some general things to know to manage a business that’s growing very quickly.
Keep Things Simple
Often as a business grows and the number of employees does as well, things can get very complicated quickly. There can be a lot of bureaucracy and channels everyone has to go through to get things done. It’s important to try and alleviate this complexity or prevent it from occurring.
There should be clear, defined procedures in place, as well as communication channels. You don’t want people in your organization to be bogged down with interpersonal and workplace complexity.
Keep Control of Cash Flow
As a business starts to grow quickly, it can be easy for cash flow to similarly increase. While some cash going out is normal, it’s important to make sure that it’s not too much. You don’t want your business to face eventual liquidity problems, so do an audit of your company in the early stages of growth looking at sales, overhead, inventory, assets and other important details.
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Try to make sure your inventory and assets aren’t taking up too much of your cash flow, and if they are, make changes early on.
Make Sure You’re Structured Correctly
When you’re an entrepreneur, and you’re in the early stages of creating your business, you may operate as a sole proprietor. It can make sense if you don’t have a lot of assets or liability.
As you grow, however, it’s essential that you make sure your legal structure is appropriate for what’s happening in your business. If you’re not incorporated, a growth period is the time to do, if not before. Otherwise, you’re putting yourself and your business at risk in multiple ways.
Empower Your Employees
For a lot of business owners, particularly with startups and relatively new organizations, one of the toughest aspects of day-to-day management can be relinquishing control. However, you can’t do it all, particularly if you’re expanding.
The best thing you can do aside from hiring qualified people is to empower them. You want your employees to think like an owner when they’re doing their jobs.
You can empower them through training and development, ensuring they feel a sense of autonomy, and offering incentives, such as the opportunity to move up in the company. As you grow, you need accountable employees more than ever.
Define Your Purpose
When you’re just starting out as a struggling startup, your business purpose might be all that you have. As you grow, it can tougher to keep that purpose in mind, even though it’s probably largely responsible for getting you where you are.
As a final note on managing during rapid growth, make sure you always adhere to your purpose and make it a central part of your business, so you don’t stray too far from what made you successful.