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Facing Your Firms Growth Pains
They say when your frim reaches the fifth year, you would have already made a dent in the business world. Financial advisors emphasize that 80% of businesses don’t survive in the first couple of years. Why is this? I believe it is because of the failure to face the firms growth pains. If the firm experiences rapid expansion without the needed infrastructure, scaling, streamlining and automation in place, it can possibly break the business.
While every company had to go through the rapid growth stage at some point, it is crucial to learn to face the real pressures, challenges and struggles that it brings. Management would have to learn what it means to work on and not just in the business. Here are some vital aspects to consider when your firm encounters growth pains:
Data is king. Learn to read your data. Have you figured out where your valuable clients are? Metrics and indicators should be in place to monitor if your performance is on track when it comes to reaching the company’s goals. Growing the business means letting the results guide where you should go and what you should focus on.
Communication. There is a high tendency to block messages when going through rapid growth. It is important to prepare the communication and collaboration tool so your message can reach the management and employees faster and address important internal issues. Over communication at the height of growing the business will be highly appreciated.
Planning Ahead. Prepare plan A, B and C but get ready to be flexible when plan A gets replaced by plan B or a hybrid of plan B, C and D. Learn to document your plan and cascade it to your team. Resources needed in the plans set can be prepared ahead of time so you can allot the budget needed for it.
Growing the business is a good opportunity. Use your data as your guide. Communicate the plans on how to face growth pains with your team. Be prepared to execute the plans made. Expansion means greater profits if you will learn to face the growth pains that come with it.