Most business owners dream of experiencing exponential growth, whether it be through a product going viral, an unexpected celebrity endorsement, or an offering that is suddenly in high demand (think plexiglass during COVID). While growth is exciting, it can also be a challenging time to navigate. As you see those orders rolling in, don’t lose sight of the business moves necessary to ensure growth can continue. Below are four common concerns business owners face during a period of rapid growth, as well as how to address them.
1. Developing Proper Procedures for Business Growth
Hopefully, your business was set up for success from inception with procedures and protocols that can grow over time. If not, it’s not too late. When experiencing rapid growth, you will need onboarding procedures for new employees, secure and automated accounting processes, brand guidelines, business strategy, and sales processes. If you don’t have consistent processes, the business will quickly become chaotic, not to mention at risk of fraud or theft. Work with an expert in human resources, accounting, and business consulting who can help to put procedures in place that will get the business on track for keeping up with the booming demand. Procedures and processes should be evaluated as the business grows to ensure they are appropriate at any point in time.
2. Expanding the Team
As the business grows, keep in mind you can’t do it all and that is perfectly ok. Although you may be able to wear many hats, frequently your time is better spent on what continues to move the business forward, as well as developing a strategy to sustain the growth. If you have the proper onboarding procedures in place with an HR department, this process will be smooth. If not, take the time to either hire an HR consulting expert or start building an HR team from within. If you’re uncertain as to how the growth will continue, hiring freelance or contract workers might be a great option. Otherwise, find talented individuals who can do the job better than you can. These may be experienced sales and marketing experts, bookkeepers or accountants, a CFO or outsourced CFO, or other niche-specific functions.
3. Creating New Corporate Structures
As your team grows, you might not be able to govern a large employee population like you once did. It’s probably time to find a team of experts that can help to make business decisions. If you’re not ready just yet to hire a full fleet of C-level executives, working with an outsourced CFO is a great option. Outsourced or fractional CFOs work with businesses of all sizes, at any stage, and can be contracted via a variety of arrangements depending on the needs of the business. Outsourced CFOs can help business owners interpret financial reports, provide guidance, and make strategic business decisions based on real data. They typically have years of experience and have often worked with other business owners who have gone through a similar situation. If you find yourself receiving an offer for a merger or acquisition, outsourced CFOs can help guide you through the process while keeping your best interests in mind.
4. Adopting New Technologies
If your books are stuck in excel, you’re manually entering customer information, sending out paper invoices, or are unable to accept payment directly on your website, the exponential growth is going to fall flat in a heartbeat. Take the time to assess your business pain points and where most of your time is spent. Consider what could be automated and consult with an expert to set you up for success. Many sales, marketing, and accounting tasks can be automated and simplified, making for smoother, more reliable processes that gives business owners and their staff back valuable time. Adopting new technologies will allow your current staff to take on more workload without feeling overwhelmed.
If you’re not prepared to accommodate explosive demand, you’ll struggle to sustain business growth. It’s all about finding solutions to build a business that will be around for the long run. If you’re experiencing exponential growth, or want to put yourself in a better place to prepare for growth, send us a message. We can work with you to set up proper procedures and harness the benefits of cloud-based technology.