Growth is a primary objective for many small businesses, especially those with sights set on sustainable success. However, hoping for growth and successfully navigating the growth period are two very different things.
As many companies come to learn, scaling isn’t always as easy as it sounds. The process of developing rapidly requires a thorough understanding of business finance, recruiting, managerial skills, and so much more. Without a proper approach to setting goals and staying organized, it’s entirely possible for your company to spiral away from you.
Here’s what you need to know to make it through a growth period unscathed – and stronger than ever.
Set Reasonable Goals
Most businesses have long-term goals and short-term goals but what about goals that fall in the middle? Setting objectives for the not so distant future can make it much easier to manage what’s going on in the present.
In addition to the objectives outlined in your business plan, set goals that extend one, three, and five years into the future that can accommodate growth. A downfall of many fast-moving companies is the propensity to continually change and bypass goals, so determine what you need to accomplish and guide growth in this direction.
Focus on Customer Satisfaction
When growth is picking up speed, it’s easy to focus on what’s going on internally instead of externally. As your customer numbers are picking up, you may think losing a few customers here and there is inconsequential, but this couldn’t be further from the truth.
No matter how big or how powerful your company may be, your sales base needs to come first. After all, serving your customers is why you’re in business in the first place, and losing sight of this can stop your progress cold.
Invest in Human Capital
Growth, while desirable, can be expensive. Investing in a larger office, more equipment, more locations, or further research and development can be extremely costly, forcing companies to make tough calls about who and what to fund. And, unfortunately, employees often lose.
While understandable – salaries are negotiable, prices for things like rent or computer equipment are arguably less so – skimping on quality talent can sink a ship faster than almost anything else. Top employees can keep a company afloat in even the toughest of periods, helping you to sustain growth and stay focused.
Don’t Be Afraid to Subtract
Most entrepreneurs are dedicated to developing best practices in the early days of business, from accounting systems to marketing methods. When your startup is small, it’s easy to stay committed to these resources, but failing to evolve appropriately can stunt your growth.
Instead of sticking to the solutions you implemented in your first days or weeks, learn to be flexible. As you outgrow areas of your business, don’t be afraid to utilize new alternatives that are better suited for your expanding operations.
Running an effective business is a huge challenge, especially in periods of rapid growth. However, an inappropriate perspective can hamper potential expansion. With the right attitude toward your future, it’s possible to ensure stable, ongoing success for years to come.
Want to do right by your business? We can help. Contact Klein Hall CPAs today to learn more.