Every business is striving to grow quickly, to make a big profit and ensure it is a financial success. However, when a company begins growing a lot quicker than expected it can result in many problems, in some cases killing a company if it is not dealt with properly. That’s why it is essential you are aware of and follow some of the most important next steps to take so that your start-up or SME not only remains financially stable but makes the most of such exponential growth.
Seek Expert Help
Depending on the industry your business works in, it is worth seeking out expert advice from individuals or firms who have also experienced rapid growth as well. They should have some helpful tips on what you should do in the near and long term future, including any mistakes they made that you need to avoid
Social media has made it incredibly easy to contact individuals who may be willing to help, as well as to research any success stories. Don’t be afraid to contact anyone, no matter how high up they may be, as even Richard Branson believes a mentor in business is important. The worst thing they can say is no!
Use Legal Advice
When a business reaches a certain size, it can begin to encounter more legal problems, as its customer, client and supplier bases will all increase. Especially for companies that deal with high cost services and goods, such as expensive retailers, art galleries and more, the chances of being caught out will be more likely.
Plus, there may be changes to your taxation. Therefore, seeking out legal advice from experts is the best step to take. You should have extra finances to cover the costs and doing so should be more cost-effective in the long run than paying for legal representation at a later date to clear up any issues not dealt with in the present.
Review Finances
Cash flow problems can arise when a business grows a lot faster than expected. What may have been straightforward before will have become a little more complicated, so it is worth reviewing your financial situation and making changes where necessary and beneficial.
To maintain growth, reducing prices by between 10 and 15% can be a good move, along with clearing as many outstanding debts as possible before reinvesting. Such growth could be just a one-off though, so it is important not to make too many big purchases or investments if the growth is unlikely to continue at such a pace.
Improve the Team
It is the team you have employed and work with that will have helped create such exponential growth, and while they should be duly rewarded, it is also worth making improvements next too. In order to deal with the extra work that the growth will have created, hiring more staff will be necessary.
Make sure they are skilled for the right positions and fit into your business strategy. Yet it is also important to review your current team and identify any weak points that need improving, as well as explaining to them that new people are being hired due to growth and not their performances.
Avoid Common Pitfalls
Finally, avoid some common pitfalls that rapid growth can often tempt. This includes:
- Success spending: blowing profits on non-essential things.
- Leadership shortfalls: not investing in good managers to deal with new challenges.
- Poor customer service: focusing less on the heart of your business and delivering a worse performance.
- Disorganisation: who is responsible for the extra workload?
These and various other factors can often occur when there is rapid and unexpected growth for a company. Follow the above steps carefully and they should be avoided, allowing your business to be a great success.
Author Bio
Zak Goldberg is a Law & Business Graduate from the University of Leeds who has chosen to follow his aspirations of becoming a full-time published writer, offering his expertise on all areas of law and finance.
