Can Your Business Grow Too Fast?
Phones are ringing, orders are coming in, and you’ve created something everyone wants. It’s all happening. Right now. But, growth can be too fast. Is your company growing too quickly? Here are some telltale signs that you need to reign things in – or fix predictable problems.
1. A constant hiring circle. Hiring staff takes time. Interviews, combing through applicants, and training is time-consuming. If you’re stuck paying more attention to hiring new staff than working on your business, you may be losing some control.
2. A rise in customer complaints. Are customer complaints coming in so fast you can’t keep up with them? Every business gets a complain once in awhile, but companies that can keep up with growth can handle those complaints. No time for your customers? Remember this: no customers, no business.
3. Borrowing too much. Money has to be available in order to meet all of those new client demands. However, there’s danger in borrowing too much too quickly. If you find that your sales don’t match the amount of money you are borrowing, this is an excellent sign that your business is growing too quickly.
4. Your employees are stretched too thin. Keeping your work environment an upbeat and happy one is vital. Employees that hate coming to work and are overworked aren’t going to make for a productive team.
5. You are burnt out. If you find that you can’t concentrate on the smallest of tasks because you haven’t slept in days, it’s time to slow it down. Remember that brilliant idea that spawned your company? That idea happened when you were relaxed, right? Take some time off – so that you can come up with more brilliant ideas.
Can Your Business Grow Too Fast: Slowing It All Down
How do you slow down a business that’s boomed too quickly? You can’t. Not really. What you can do is create a plan to handle all the volume. Even better (if you haven’t reached this point yet) idea: make sure that you are prepared for growth from the start. Too late for a pre-plan? Take some time off between interviewing and balancing budgets to come up with a plan.
The most important thing is to make sure that you have enough cash flow. If you run out of money, it’s game over for your business. You may have to search high and low for that extra cash flow, but it’s a necessary step. You can also slow down production, momentarily, until you get back on your feet. Also, start saving for that rainy day now. It might seem hard to save at the moment, but it’s an absolute necessity.
Have you experienced rapid growth that you can’t keep you with? What did you do? Any ideas to offer up? Feel free to let us know below.