Before starting a new venture, there are a few questions you need to ask yourself. One of the most important questions to ask is: is my business scalable? It’s crucial you have a business concept and model in mind that’ll see your business grow at a healthy rate but beware, it is possible to grow too fast.
There are a number of issues associated with growing a business too fast. Here’s a few to keep in mind.
Recruiting the wrong people to drivesuccess
One of the biggest issues with growing too fast is not taking the time to consider your needs before frantically posting job ads to find people to meet the demand. This can result in failing to properly consider the credentials of each candidate against your needs or creating a role the business simply doesn’t need. Either way, good recruitment takes time and money, so you need to afford yourselfenough time to consider your business’ needs and find the right candidate to fill the role.
Not understanding the numbers
When you first start out, the numbers are small enough to handle; you can manage the bookseven if you don’t have any prior accountancy experience. But when you’re growing at a rapid rate and the numbers start going crazy, it can be hard to know when it’s time to hand over the reins and leave it to the professionals. And if you don’t pick the time sharply and wisely,you’ll start breeding problems without even realising.
Losing control of what’s going on at the ground level
When your business reaches a certain size, you’ll naturally step away from the operational side of management into a leadership and decision-making role. The problem here is that if you haven’t put the right processes and infrastructure in place before you start to do so, you’ll lose control of the reality of the business’ day-to-day operations which in turn will fail to inform your decisions at the top.
Losing grip of customer service
A growing customer base means there’ll be greater strain on your organisation to provide the level of service necessary. It’s not good reacting to an inability to provide the level of care your customers demand.Business growth needs to be forecasted and planned to ensure you have the right channels in place to handle the growing volume of customers.
People (and yourself) become overworked
Any business needs to keep a firm grip on its workplace culture and work-life balance. If you don’t, the people around who have built the business from the ground up into a success simply won’t stick around. It’s important that you retain your staff at all times but especially in the early days so ensure that your staff haven’t become swamped in a pile of work they can’t really handle. Not to mention that a tired and overworked workforce are certain to make mistakes.