Growth is good. It’s necessary for business. In last week’s blog, we shared principles that inspire growth, but now let’s look at the other side of the growth coin. Too much growth too fast can choke a company out before it has the chance to adjust. We’re not suggesting that you put the brakes on growth. We do want to identify some of the challenges of rapid business growth so that you can be prepared.
Energy Drain: The velocity of rapid business growth is a stimulant — pushing, driving, incentivizing, and creating a massive adrenaline rush. However, stimulants tend to catch up in the long run. There’s little to no time to just…breath. Take time to slow down and process all that’s going on before the rush depletes you.
Myopic Vision: Myopia is pretty much a fancy word for nearsightedness. When going quickly through a season, it’s easy to look only at the day-to-day. After all, spur of the moment decisions must be made. While those quick decisions are part of survival mode, remaining locked in the moment can hurt a business. Taking time for the big picture view will help prevent rapid-fire decisions from negatively affecting the future.
Quality “Un-Control”: When your business is in its infancy, before the hustle and bustle of a growth spurt, it’s simpler to monitor your production line. But when things pick up, with quick fulfillment a high priority, this falls by the wayside. It’s no longer so easy to take the time to check for quality. After all, it slows you down. And let’s be real, sometimes it’s plain inconvenient. But mistakes happen and get missed in the rush. Don’t cheat on quality control – allowing inferior product out the door can come back to bite you and flip that growth into costly back peddling.
Cash Crunch: As in the rest of life, with change comes more expenses. The cash flow is all over the place as you win more sales and scale-up for an increased production line. Paying attention to financials is crucial. Don’t neglect a careful evaluation of the cost of delivering and meeting demand, as well as collections and accounts receivable.
Relational Break Downs: We’ve all been there — both in and outside work — when life gets busy in one area, another gets overlooked. When production demands increase, it’s easy to let weeks go by without a team briefing. Hiring, training, and on-boarding are hurried. Your people-focused vision becomes not, so people-focused, and your employees start to feel it. Customer service takes a back burner. Be aware – maintaining positive relationships is crucial to lasting growth.
Let’s be clear. We’re not saying this to scare you or imply that growth is a bad thing. Nope – growth signifies a well-run business. But with growth comes challenges – hopefully, this blog helps you identify and strategize through them.
Speaking of help… we’re here to help you in any way that we can as you grow your company, especially with building your team. Hamilton Connections has been building teams and combining talent since 1986, and our people-focused vision is what sets us apart. Looking to hire new talent? Questions? Contact us today!