August 21st, 2015.
A Quick Guide to Managing Fast Growth Business
Your business is growing quickly which is great news for you – congratulations – but it isn’t without its difficulties. When a company grows faster than you predicted it can become difficult to manage and without a quick and efficient response you may find that things start to go wrong.
If you’re in the fortunate position of having your business exceed your expectations then here’s a quick guide just for you:
You’re growing, that’s brilliant but it probably means that your staff are working their socks off to keep things ticking over. Take a look at their current workloads and bring in new staff to help pick up the slack and make their jobs more manageable. At this point it could be worth creating senior roles and moving existing employees up and hiring new blood below them. Creating a strong structure within your company helping to prepare it for any more unexpected growth.
Look at Financial Implications
Are you still operating at a profit? Have you got any outstanding debts? If you’re rapidly growing then you should try to clear as much debt as possible to ensure you have the funds necessary to accommodate this growth. Try to collect all outstanding debts from customers and recalculate a monthly and annual budget to give you an accurate idea of the level of cost that you should be operating at.
Revisit Your Finances
Since you’ve grown so rapidly, you could be able to negotiate a better deal on your finances. With better rates, lower repayments or shorter terms you may find that you have more cash available to put back into the business. This is vital for continuing to grow the business and maintaining your existing quality levels, as larger production levels can place a huge strain on small businesses.
Consider Upscaling or Relocation
Is your current building and location ideal for the amount of growth you’ve exhibited? Chances are that when you were starting out you didn’t think that you’d grow this rapidly and therefore didn’t think of the extra space you would require. If this has happened to you then you should consider the possibility of upscaling your business premises or even relocating to a more desirable area.
An expanding business isn’t always a good thing, especially for small customers. If you have lots of grumbly clients who often take up huge amount of your time, then now is the time to make the cuts. Get rid of any clients that you feel aren’t of benefit to you – there are two benefits to managing clients like this:
1. You are able to manage your growth by cutting back on the sheer number of clients, ensuring that you don’t end up having more clients than you can take care of.
2. Get rid of deadweight clients who take up a large chunk of your time for very little profit.
Put New Goals in Place
You’ve met your goal for growth and now it’s time to put new goals in place. Try to set up goals that focus on the mid-term aims of the company, if your expansion continues at its current rate then you should achieve these relatively quickly. Keep your original business model in mind, but look at the things you’ve done that have been largely successful and bring these aspects in too.
Learn to Delegate
Being a small business owner it is natural to want to have a hand in everything the business does, but unfortunately the more you grow the harder this becomes. The most important thing you can do to manage an expanding business is to delegate – whether this is trusting your sales team to handle incoming clients or using a commercial finance broker to provide you with the best finances.
If your business has experienced a growth spurt and you want to speak to someone about finance for your next big step, just give our experienced team a call on 02920 766 565.