A growing business may seem like a dream come true, but what many people don’t realize is that it can create problems in and of itself. If you’re not ready to deal with change, growing too much in too little time can actually be a problem to be solved rather than an advantage.
A business can grow too fast, especially if it is moving from a small business to a larger one. This is because small businesses are less equipped to deal with the challenges posed by growth than larger, more experienced corporations.
If you’re not sure if your business is growing too fast, don’t worry. Here are a few signs to look out for.
Quality standards are not met
Whether you provide products or services, one thing that sets a business apart from the competition is the quality of what it provides. Ideally, your products and/or services should pass a quality check to ensure your employees do their best.
Companies that grow too fast often make compromises at this stage to make sure they are able to meet growing needs. If your quality standards do not meet, you will begin to notice a growing level of negative reviews and complaints. It is obvious a sign that your business is growing too fast. It won’t be sustainable, your reputation will suffer and customers will go elsewhere. It is imperative that you implement a quality assurance process as soon as possible.
You don’t have a place
Sometimes rapid growth means not only that you don’t have the mental and temporal space to meet customer needs, but also that you don’t have enough physical space.
If you’re not ready to move to a bigger office but think your current one is too small for your business, you’re probably growing too fast. One option is to hire warehouse space to help you out.
You may need multiple units depending on your needs. However, one can find cheaper storage units wholesale for rent. However, keep in mind that this is a temporary solution. The only long term solutions are either investing in a larger workspace or changing your business model to a more virtual approach. or look for ways to slow growth in preparation for a move.
You are in a cash flow crisis
This is another counterintuitive result of growing too fast – you don’t have enough money.
A lot of sales sound like your business should be fine in terms of cash flow. However, high sales also mean high demand, and there is often a lag between the increase in your inventory and capacity and sales revenue.
High demand means you may have to invest more money in inventory, manufacturing facilities, invest in software, or expand your team and hire more people, which can increase your overhead. These additional costs and overheads must be paid before you receive the income from the increase in sales revenue, meaning that you will face a cash flow problem despite strong sales.
Do you have customer service issues?
As companies scale their business operations to meet growing demand, they often forget to scale their customer service team as well.
This, in turn, can leave your existing customer service staff overwhelmed. They will have to deal with additional problems without additional support to deal with this increase.
Also, as mentioned above, growing too fast can cause quality control issues, which in turn can lead to customer dissatisfaction. If you offer to replace services/products, your team will have more stress to add a new project to their already overloaded schedule.
All of these issues can cause problems with how you treat your customers and can lead to customer annoyance or even loss of valuable business. It is very important to keep customer service and staff in mind as you work to meet changing demand. While they don’t directly increase productivity, having people with good interpersonal skills on your team makes it much easier to retain both valuable customers and the talented employees you rely on.
Rapid growth may seem like a good thing, but it should be limited by your business’s ability to keep up with changing demands on you and your employees. Having clear plans for what to do in the event of rapid growth helps reduce the risk of this and also ensures that your business can scale as easily as possible in the event of an emergency.
Many small businesses do not survive this stage due to changing ownership requirements. However, having a plan and a willingness to deal with such a situation should it ever arise can help you and your company handle this changing period with ease and grace.