Every entrepreneur would love to experience rapid expansion in their business. However, as Anthony Zingarelli, leader of United LLC, explains, sudden sales booms need to be treated with caution so the company can adequately manage the growth.
10 Cautionary Tips to Manage Rapid Business Growth
Here are 10 tips for managing an expanding business and avoiding the potential pitfalls of rapid growth.
1. Diagnose Your Growth
The best way to manage rapid growth is to ensure that you have control of your business. Conduct an in-depth analysis of all central departments and functions to ensure you know where any weaknesses may lie, and then make necessary changes to prepare for rapid growth.
2. Have a Strategy
Planning is an essential part of building a sustainable business, and it’s especially true as you start to grow. Strategies for growth should include timing, marketing, and operations to ensure they all support each other.
3. Forecast the Cash
Rapid growth is a good thing, but it also often results in the need for additional resources. Eventually, the boost in sales will pay for these resources, but not at first. Knowing what your cash flow looks like now and what it probably will look like during rapid growth is essential to delivering to your customers.
4. Stay on Top of Accounts
It can be easy to lose focus on your accounts, payables, and receivables during rapid business growth. To manage this, conduct regular checks on both outstanding invoices you owe and are owed. Run regular reports that keep you tuned to what’s going on in the financial back-end.
5. Keep Costs Low
Some business owners have trouble controlling costs during rapid growth, and they spend and spend to solve short-term gaps, which often causes long-term problems. If you want your rapid growth to be sustainable, you need to keep your costs as low as possible without sacrificing quality.
6. Be Mindful of Debt
Another option that business owners sometimes pursue is debt by financing extra resources through credit cards or other loans. If used strategically, additional cash flow can help the trajectory of a business; however, it’s important to maintain a healthy balance sheet, especially once growth subsides.
7. Don’t Lose Sight of Customers
Your customers are the bread and butter of your company. Without them, growth isn’t possible. So, as you are experiencing rapid growth, never lose sight of the customer experience. Always provide the best experience possible, so your customers return.
8. Have Good People
If you don’t have good people around you, it’ll be hard to grow efficiently and effectively. Make sure to have the right team in place before extensive marketing and sales push so that you can rely on others to help you.
9. Plan for Additional Staffing
One of the primary resources during rapid growth is more help. Have a plan in place for immediate hiring to support the rapid growth. This includes the money necessary and the recruiting, onboarding, training, and managing processes.
10. Be Flexible
All the planning in the world won’t guarantee that you have every angle covered. As Anthony Zingarelli of United LLC explains, business owners must remain flexible during rapid growth. Don’t be so rigid in your approach. Change and adapt where needed, and you’ll be more likely to be successful.
About Anthony Zingarelli
An out-of-the-box thinker with unique ideas and tremendous resources, Anthony Zingarelli is the founder of United LLC — an operations management solutions firm based in Dallas, Texas. An expert in operations management, Zingarelli helps companies and startups realize their dreams and experience explosive growth by obtaining financing, building business plans (including exit strategies), and locating key personnel and resources. He has an extensive track record of providing innovative, value-driven services and executing complex deals.