Did you know rapid growth can crush your business?
There are a couple of reasons for this. Growth can be resource-intensive and some business owners take their eyes off the ball, thinking their growing businesses can now run on autopilot.
If you have a growing company, now is the time to put in the most work. In this article, we’re sharing helpful business management advice to keep your fast growing company out of harm’s way.
Let’s dig in.
1. Monitor Company Finances
In a period of boom, your business is typically making a lot of sales and generating vast revenues. With the money flowing in, it’s easy to fail to keep tabs on the money going out. Indeed, it’s not uncommon to find many small companies move to bigger offices or going on a hiring spree during periods of growth.
If you don’t monitor your business’ finances at this time, you could end up with poor cash flows. Yes, a lot of money is coming in, but that doesn’t necessarily mean it’s time to spend big.
Your company won’t always be on the growth path. Soon it will hit a plateau or even a slump. If you rack up big expenses, you might be unable to stay afloat when revenues decline.
It’s best to stick to your budget and only adjust when necessary.
2. Conduct a Growth Audit
From day one, you set up your business for growth. So, it might not come as a surprise when your company starts hitting growth milestones sooner than forecast.
However, while most companies achieve growth organically, there are instances when the growth is superficial. Performing a growth audit enables you to determine what’s behind the growth and plan accordingly.
For example, a business can go on a growth run after a viral marketing campaign. Don’t be fooled that this will be the start of a long period of growth. Don’t make decisions with long-term budgetary consequences, such as workforce expansion, during a period of seasonal growth.
3. Streamline Your Workforce
Workforce management is a big challenge for fast growing companies.
It’s understandable that you might want to expand your team, since growth typically comes with more labor demands. For instance, you might need more customer service reps to handle the influx of orders.
This is the best time to streamline your workforce instead of making knee-jerk hiring decisions. Evaluate each role and ensure you aren’t short-staffed or over-staffed.
You can also automate some functions. Look into chatbot technology to help with customer support, for example.
You can also use technology to manage the access of your employees to company systems. Check out https://www.securityweaver.com/solutions/access-management/secure-enterprise.
Manage Your Growing Company Properly
You’ve done incredibly well to steer your company into growth. But this isn’t the time to sit back and watch the profits pile up. Practicing proper company management is the key to ensuring sustainable growth.
With this advice, you’re now in a good position to run your growing company the right way. All the best and keep reading our blog for more tips and insights.
