The INC 5000 lists rank the country’s fastest-growing private companies. Being included on this prestigious list has become the hallmark of entrepreneurial success. Many on the list know that fast growth can be painful, but there are things that you can do to minimize the pain. Having earned a spot on the list for the last two years, at Klein Hall we understand what it’s like to navigate a rapidly growing business. Below are some ways how to reduce the impact of common growing pains with a new business.
Building Shared Company Values
Essentially, this means you are mission-driven. This is not picking a problem, developing a solution and selling it on Instagram. Instead, this means building solutions that revolve around the needs of your customers. Even more, from this, a vision emerges.
Once a vision is in place, a mission to get there develops. Visions should be ambitious and permanent, focusing on impact. This will drive your company. It will be your rallying cry, drawing employees who share your vision, who want to be part of the solution, and who will work hard to achieve it. It will also help you explain why you are taking the risk and building the company.
Get Employee Buy-In
You don’t need to re-create the wheel with this; consider following Dick Costolo, former CEO of Twitter, who championed transparency and effective communication with employees. Develop your core values because they matter, not because you have to, and spend significant time on it. Then, use them everywhere and in every way possible, so the company almost breathes them—in the interview process, for performance reviews, at meetings. This will develop into an attitude that everyone shares and understands when it comes to how they work together and how the company is built.
Manage Growth, Increase Efficiency
To manage your burn rate—of cash—model your growth against your revenue plan. This is accomplished by building both financial and operational forecasts. From that framework, you will understand where the money is coming from and where it is going.
Another part of this equation is developing key metrics that will tell you how well, or efficiently, you are achieving your goals and objectives. Once you have those in place, it will be easier to adapt the company’s organizational structure through clear job descriptions, keeping teams small, and making sure everyone’s mission is clear.
Leave Them Alone
When you are the CEO you should avoid being involved in the day-to-day operations. Instead, build a great leadership team and let them do their jobs. Ali Rowghani, former COO of Twitter and CFO of Pixar, explains that this takes you from a Phase 1 CEO as Doer-in-Chief to a Phase 2 CEO as Company-Builder-in-Chief. You are then responsible for creating purpose, alignment, constantly working on moving the needle, and nurturing company culture.
Your Financial Future is Here
At Klein Hall, we offer a comprehensive suite of business advisory services. Our team of advisors, accountants, and Financial Futurists perform all the day-to-day functions of an in-house financial team, without the cost and complexity. We provide standard accounting services, financial advisory, controllership, recruiting, and an innovative Klein Hall CFO solution. It’s everything you need to own today and prepare for tomorrow.
Contact us today and let’s get started helping you move forward.