How to manage dramatic business growth
January 20, 2017
Managing dramatic business growth can be tricky, and sometimes there can appear to be insurmountable obstacles to overcome.
Here is some food for thought for entrepreneurs who are lucky enough to face the rapid growth dilemma.
Customers must always come first
Your customers and the experience they receive must always be the priority.
Striving to provide exceptional customer service should be at the forefront of all decision-making, whether that means investing more capital, people or technology into delivering outcomes that will keep customers happy.
Also, ensure negative customer feedback is always followed up.
Manage workplace culture
Productivity is imperative when managing dramatic business growth, but how do you maintain high levels of efficiency?
The answer is to foster an effective workplace culture – one that encourages employee loyalty and inspires them to excel.
That means educating and empowering employees, explaining the company’s values to new and existing staff, potentially adopting new management processes, and penalising those who do not respect the workplace culture.
Reward employees who excel during the growth period.
Stay on top of finances
One of the challenges of swift expansion is keeping on top of finances.
Whereas, previously you may have been able to get away with taking a relaxed approach to financial record-keeping, suddenly you must be meticulous.
Being aware of the tax implications of massive growth is also crucial, as discussed in our recent article.
Funding your business expansion
With rapid growth comes pressure on cashflow and an increased need for working capital in the business.
This can be managed through a range of sources, including owners’ contributions, leaving profits within the business, credit terms or debt.
Experts such as LDB can oversee your cash flow and assist with management of your working capital.
Keep the end goal in sight
As a rapidly growing business, it’s important to maintain a clear sense of direction.
If you’re in it for the long-haul, ensure you regularly review your business model and make sure you have a short-term and long-term focus.
If your goal is to sell the business, think of ways to add value, such as streamlining your product or service, building your customer base and increasing the company’s capacity.
Plan your exit strategy carefully, and remember your ultimate objective, whether it be financial security or top-level management when you sell.
Invest in expertise
At LDB, we have a team of business and financial experts who provide invaluable advice about how to handle rapid business growth and overcome obstacles.
Our extensive business acumen and skillset are at your disposal – all you have to do is get in touch. Please call LDB on (03) 9875 2900 or complete the contact form below.