Growing Too Fast
If your collections are on track, that's not an insurmountable problem. However, a cycle or two of delayed collections could leave your business in that proverbial spot between a rock and hard place. To keep cash flowing anticipate the cash crunch with a realistic plan that accounts for delays in the collection of receivables.
Prepare a back-up plan for raising cash from personal sources or through a pre-approved line of credit from your bank. Diversify your client base if possible.
If you depend on one big client as a revenue source, you are leaving your small business vulnerable to the whims of the client. Need a loan for your small business? Get a business loan faster and easier from OnDeck Capital.
Consider the following for a fast growing business:
Must be in business for one year. When your business starts growing quickly, you will be forced to improvise to manage increased demand for your products or services. When business buildup happens too fast and too soon, you will not be able to adhere to your perfect business plan where your operational processes flow smoothly. You may be pressured to hire more people sooner than you anticipated, and you may not be skilled in choosing the right people or you may not have the time to redesign your workflow to accommodate increased demand.
While higher demand should lead to economies of scale, this may not happen if rapid growth results in any of these problems:. Manage the ordering system and the order fulfillment process so that you will not end up over-promising to your customers. If possible, talk to owners of other fast growing businesses to see what problems they experienced and so you know what to plan for.
Their services are free, and they may be able to help you be aware of problems and solutions for your type of business. Remember, too, it is better to turn down customers than risk annoying them if you can't deliver on time or can't deliver quality goods and services.
23 Tips to Succeed When Your Business Grows Too Fast
A few customer complaints occasionally are part of doing business, but when negative feedback starts to pile up, it is an indication that you are not meeting client expectations. This could be due to lack of personnel to manage client interactions. It could also hint at other issues if your staff is spread too thin and is cutting corners to meet customer demand. Clients who provide positive feedback are bound to be repeat customers.
A host of negative feedback could indicate that you are unable to cope with the market's expectations in terms of the delivery because you are overwhelmed. Make sure to monitor your feedback system regularly, keep an eye on social media mentions of your business, and have a plan in place for handling both positive and negative feedback. A vibrant workplace inspires employees to work their hardest, but when work consumes most of their waking hours, you run the risk of losing your trained and trusted employees.
You may find that your business is a revolving door of employees in spite of generous compensation and benefits. Pay attention to the evolving workplace culture as your business grows. Find the time to discuss quality of life issues during staff meetings. Make sure to address personnel matters as needed, but do it expeditiously.
As your business grows the number of employees, desks, filing cabinets, and amount of inventory you keep on hand are likely to increase, too. If you outgrow your office space and to move to a new location before your lease is up, you could be responsible for continuing to pay the lease until a new tenant is found for the space.
Dangers of Rapid Business Growth and What to Do About Them
A lot of this comes down to access to information: Making sure that everyone in your company works together as a team around the core principles that have made you successful so far is key, and that means getting organized. The balance you are able to create within your small team of great people is part of the magic behind how an excellent startup happens. However, as you grow, it becomes difficult to keep hiring people who check every box while also filling your needs as quickly as possible.
- 23 Tips to Succeed When Your Business Grows Too Fast?
- Growth Disorders?
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You need people with specific skills, and you need them now. Just as your sales team needs to grow as your company does, you also need to keep up with the increased demand for customer service as your business grows. Many smaller businesses build their reputation on excellent, personalized customer service, with representatives who are more than willing to go the extra mile to convert a customer into an advocate. Rapid growth can make it difficult to live up to your stellar reputation.
Is it possible for a child to grow too fast?
Make sure that, as you grow, you pay attention to your customer service operations, and have clear standards that put you in a position to succeed. As your business grows, you need to be able to step back and look at bigger picture.
At the same time, be careful not to become divorced from the daily reality of your business, because this disconnect is also dangerous. Technology and connectivity both play key roles in the growth of businesses. Your business needs to have the right tools in place to ensure all systems are running efficiently and effectively. Businesses these days need solutions that range anywhere from internet and storage solutions to voice over IP and cloud-based applications.
The technological requirements of a business vary greatly based on size, goals, and structure of a company.
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- Is it possible for a child to grow too fast?.
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