Business is booming, sales are up and profits are higher than ever. Your business goals are coming to fruition right before your very eyes – and you realise all that hard work is finally being paid off. It’s exciting, invigorating and your emotions are at an all-time high.
However, managing business growth is no walk in the park. And with all this excitement it is easy to get caught up and fail to handle it effectively. Without preparing for manageable growth, the tables can turn quite quickly and your biggest dreams have now become your worst nightmares.
There are some serious challenges involved in this process and it takes a lot of careful planning and execution. What has worked for your business in the past may no longer be effective now that you have grown. Therefore, being aware of the new set of risks and opportunities now present in your business will be crucial to your survival and overall success. Hence, we have outlined the following 7 tips on how to manage business growth:
1. Understand Cause of Growth
You’re clearly on the right path if your business is going through a growth period. In this case, it is important for you to uncover what sets you apart from competitors and what exactly caused the sudden growth in the first place. Keep these points in mind, these should become core values in your business model.
Growth involves strategic planning and it’s good practice to ask yourself questions in order to determine your key goals and objectives. Start by asking yourself, am I:
- Able to obtain the necessary capital to sustain my growth?
- Experiencing cash flow problems?
- Expanding too rapidly?
- Growing for the right reasons?
- Collecting my accounts receivables in enough time?
- Content with my management teams capabilities and understanding of how to manage business growth?
2. Prioritise Customer Experience
Customers always come first, regardless of what stage of business growth you are in. It is crucial you consider your customers and ensure their needs are being met. Don’t just be another big company that doesn’t prioritise the customers. Particularly if they are used to receiving high levels of support in the past. This will only drive them further away if you are no longer providing this experience.
At the end of the day, you can’t experience growth or at least won’t be able to sustain it without customers. They are what drive your business and bring in profits. With today’s digitalisation, social media and other forms of online feedback are great resources to see how your business is growing in the eye of the consumer. Trust us, you’ll soon realise whether people are speaking highly or looking down on your business and how you’ve managed your growth.
Check out this article for more on how to manage business growth through prioritising customer experience.
3. Measure Staffing Needs
As your business grows, it is important that you have the right people around to support you and the company. It is a telltale sign that the employees you hire inevitably impact the future success of your business. Without the right team, your business will fall flat and growth will not be maximised… Don’t let your ego stop you from employing individuals who are smarter than you. Do so, and you will soon find that these are the kind of people who bring innovative ideas to the table and facilitate sustainable business growth. Take a second to consider how Steve Jobs, Co-Founder of Apple put it,
“It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do”Steve Jobs, Apple Co-Founder
Moreover, your team should reflect the overall values of your company and represent this through their skill sets, behaviours, beliefs and experiences. Hiring and retaining employees will be extremely difficult if they don’t fit into the current or desirable company culture. Not to mention, the resulting negative impacts of poor work performance and decreased job satisfaction are detrimental to your businesses success.
**This is also a key time to consider whether staff responsibility is being optimised to increase productivity.
Check out these strategies on how to manage business growth through hiring temporary employees.
4. Manage Your Finances
When profits are on the rise, it is easy to become complacent with your financial management. Don’t let this be the case. Financial mismanagement is by far the slipperiest slope resulting in business failure.
As a matter of fact, the faster your business grows the more crucial it is for you to manage and plan future finances. Setting budgets, benchmarks and future forecasts are key habits you will want to implement now and stay consistent with throughout your growth.
This requires a thorough analysis of:
Once you have a clear understanding of your financial position you can plan out how to manage your growth in alignment with these factors and refinance accordingly. As a result, avoiding any potential liquidation down the track.
5. Monitor Cash Flow
Managing your finances is one thing, cash flow is another. In order to manage increased demand, additional cash flow is particularly crucial for a business experiencing growth. This means maintaining working capital – you want to avoid having your cash tied up in outstanding debts and stock. Consistent forecasting is also a must-do. Keep a close eye on the money entering and exiting your business.
**Strong cash flow is much more attractive to investors.
There are many ways to gain the supplementary funding needed to finance orders, inventory, maintaining production equipment, upsizing office space or hiring new employees. Check out this information on how to manage business growth by raising capital and the many ways you can achieve this. Always make sure to do your research or get advice before making any financial decisions.
6. Welcome Change
As a business owner, you already know the value of being flexible and adaptable. This is just a reminder to go with the flow of changing trends and ideas. Try out different strategies when dealing with a growth phase and see what works best for your business.
When learning how to manage business growth, is all about being an effective leader. Without a doubt, you will be confronted with challenging decisions that require you to be adaptable. Without the ability to welcome change, this will only be detrimental to your employees and business as a whole.
7. Seek Proffessional Advice
As mentioned throughout this article, there is a lot to consider and process when it comes to managing business growth. However, you do not have to go through this alone. There is never any harm in seeking help and advice from an experienced business advisor. Not only do they have the professional advice to help you sustain your growth, but also the ability to significantly reduce your stress. Putting this into the hands of a trusted advisor will allow you to get back to focusing on more important aspects of running your business.
Here at BUSINESSNAV, our business advisors are experts in financial management and strategies to effectively manage your business growth. Find out more here or contact us today to get on top of managing your growth.
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