Business growth is always exciting. Seeing your revenue, client base, workforce and market share expand is proof that your hard work and tireless efforts are paying off. Best of all, this is something that you can control, as long as you are putting in the necessary time, work, and effort.
While you may be eager to move your startup onward and upward, you shouldn’t forget about the potential negative impacts of scaling up. Expanding too quickly can mean biting off more than you can chew, and it’s easy for a business to collapse on itself if it cannot handle rapid growth.
Here’s what you need to keep in mind as you scale up if you want to avoid toppling your business, according to 11 members of Young Entrepreneur Council.
1. Do What You’re Best at and Outsource the Rest
As you scale your business, your highest priority is to identify what you do best in the company and then find someone who is even better than you to do that task. This will free up your time to focus on growing your company and not just working for it. For example, my strength is ranking websites so I hired someone I trust to implement my system and it’s saving me 80 hours per month.
2. Invest in Talent Management Early
Too many startups hire for the present when they should be hiring people with the skills for 18 months into the future. Design roles for capable people to grow into. While a jack-of-all-trades talent seems valuable at the earliest stages, hiring experienced functional leaders is important during a startup’s growth phase. Lastly, turnover is inevitable so be prepared for this necessary reality.
3. Implement Top-Notch Project Management Systems
As you scale and hire people, there will be more to manage and more minutiae will be created to account for the increase in projects and personnel. Having a project management system that can account for tracking projects at the macro level, as well as the minutiae of each project, is essential as you grow. Find a project management solution that is flexible, customizable and scalable.
4. Make Sure Your Technology Can Grow With You
Make sure that your technology has the capability to scale with your business. For example, many e-commerce businesses find themselves needing to migrate from their current platform to a more robust solution in order to handle higher user and order volume. This is a complex process that can stunt a company’s current growth rate. To avoid this, select a platform built for scalability.
5. Constantly Monitor Cash Flow
As you grow your business, you will be acquiring new obligations and spending more money. Make sure to constantly monitor your cash flow and P&L. New expenses are not directly proportional to the contracts you are getting. Contracts have different arrangements and payment schedules. I have seen a lot of companies grow really fast and end up failing for this reason.
6. Invest in Continuous Education
When I first launched AFS, we were a small company with an idea. As we expanded to a national player, we maintained the way we did things as a small company, and we didn’t adapt well. Once we instituted a continuous training and education program, we built teams that could adapt to growth and I found myself better equipped for the new challenges we faced as a larger organization.
– Rahim Charania, American Fueling Systems
7. Build Your Internal Processes to Handle Scaling
Scaling a business is not necessarily about getting more sales or hiring more employees. If your internal processes aren’t built to handle more business, then you could be wasting money overstaffing due to repetitive tasks that can bottleneck the workflow — an error that could cost you in potential sales and revenue.
8. Have An Exit Strategy
When times are good, it can be deliriously satisfying to expand your business exponentially. However, it’s important to have a plan for when the money stops flowing in. Markets are unpredictable and can turn sour at any time. A bit of foresight and careful planning can ensure that your business survives a recession.
9. Improve Your Customer Service
Too many complaints can bring your business to a crashing halt. You can’t stop every complaint, but you can reduce them greatly by beefing up your customer service. Train staff to resolve complaints. Stay engaged on your social media pages where customers love to take out their frustrations. Reply and make them feel like they are a priority. Just replying can make a huge difference to customers.
10. Prioritize Employee Career Development
To sustain high growth, a company needs to retain and attract the right people. One necessary tactic to employee retention and attraction is designing career growth within a company. Employees need to see themselves progressing as fast as your company — and there needs to be buy-in from both employer and employee on what that career development looks like so you can both grow together.
11. Take a Slow and Steady Approach to Growth
It can be easy to get caught up in growing quickly, but I’ve seen a ton of businesses do that and then have to downsize immediately. It puts people out and isn’t a great way to build a solid reputation for your company. It’s important to take a step back, move slowly and really think about the next steps you’re taking to grow your business so you don’t get ahead of yourself.
Grow Your Business, By Growing Your Personal Brand
Of the many different ways to grow your online business and brand, don’t forget about the importance of growing your personal brand in the process. This is especially true if you are the face of the brand. Through the power of social media, it’s extremely easy and effective to not only reach new audiences but to also rank higher in Google for personal names and brand names in the process. Be sure to try out this method, along with each of the recommended tips above for growing your brand or online business in 2018.