Dealing with the Pitfalls of Rapid Business Growth

While every entrepreneur’s aim is to create a company that grows steadily over time, it is all too easy to become a victim of your own success. If the expansion occurs too quickly, you may find yourself struggling in several ways. These pitfalls can take your business down before you know it unless you make an effort to avoid them from the very beginning.

A graph showing gap growth

Do you feel like your business is growing too fast?

Excessive Workload

 

As your company expands, the tasks that you and your employees have to deal with will continue to evolve. This can place needless stress on everyone by increasing work hours and decreasing the amount of time spent on each individual project. To avoid this, it may be necessary to:

 

  • Hire additional staff
  • Provide better training
  • Utilise new technology

 

Do what you can to retain the same average weekly workload so you and your staff don’t feel needlessly stressed while on the job.

 

Rushing Hiring Procedures

 

If you do find yourself with too much work, one of the most common tactics is to hire more employees so you can cope. Unfortunately, the added urgency of the situation may mean hiring practises are done without taking time for full applicant evaluations. This can pull your company down even more as you end up with a team of staff who aren’t qualified for the job you’ve asked of them. When recruiting, never rush through the overall process as a little extra time can save you a lot of hassle in the long run.

 

Greater Costs & Borrowing

 

There’s also the risk of financial problems if your business expands too rapidly in the future. For example, you might have to:

 

  • Spend more money on increased production
  • Cover your additional accounts payable
  • Pay for larger office space for your business
  • Offer wages to a larger number of staff
  • Borrow additional capital to cover these costs

 

Again, you can avoid this by making some smart choices for your company. For example, renting out virtual offices is a cheap way to expand your business. Just think outside of the box and you can grow your company without the need to spend large sums of money and blow out your budget in the process.

 

Compromised Output Quality

 

Since a rapidly growing firm can often result in the pitfalls mentioned above, this can then lead to products and services which aren’t as good as you previously offered. This can then lead to a loss of customers which is exactly what you don’t want with increased production, additional staff recruitment and more financial commitments. Again, there is a simple way to avoid this unfortunate corporate predicament. Simply remember to do the right thing by your customer and you will not sacrifice your firm. No matter how quickly your company is growing, take the time to think about the final product. If it has still been made using the high quality standards you’re known for, you won’t put your business at risk.

 

Missed Opportunities

 

Lastly, the fact that you’re rushing around trying to deal with the increased growth of your organisation might mean that you miss out on even more chances to expand. Make sure you still have the resources to look at every opportunity that comes along. Only then can you continue to grow over time. By managing your time and staff using the tips mentioned previously, you can improve your potential for future expansions as well, ensuring your business can continue to survive.

 

As you can see, it is quite possible to deal with period of rapid growth without putting your company at risk. With some careful planning, anything is possible in the business world!

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