Every entrepreneur has the aspiration of growing his or her business and continually expand it as time goes on. Growth in business is more than expected, it is eagerly anticipated. Businesses that experiences rapid change celebrate good success but are also in danger of crashing down if they don’t effectively manage the rapid changes that occur. Therefore, as businesses grow and expand, things are not expected to remain the same way it was when the business was operating in a small scale; mode of operations, finances, advertising, cost of raw materials, assets, expenses, and lots more are affected as the business experiences these rapid changes and growth. What therefore are the ways an entrepreneur can handle a business that is experiencing rapid growth? The steps are listed below:-
- Identify the key cause of the growth- there must be a specific thing you are doing that is causing this rapid growth. By identifying the key cause of the change, you would be able to manage it better. For example, if the key cause of the business growth is an added product you recently introduced to the market, then you would know that this is what customers would mostly demand for and you would be able to channel your resources wisely into the production of that product and make added sales. In other words, understanding the cause of the sudden and rapid business growth would enable you know and decide which aspect of your business to concentrate majorly on.
- Consider your workers- your workers are a major part of your business success and the probability of your company functioning properly and excelling largely depends on the level of commitment and input your employees put into the business, simply put that your input would determine your output, and your workers does major part of the input. Due to the rapid growth your business is facing, your workers would be compelled to work extra hard to meet up with demand and deliver excellent services, do well to consider their needs at this point and provide whatever they would need to ensure they work effectively. Also, as your company’s income has increased due to the rapid growth that it is experiencing, consider increasing their salaries at this point in order to encourage them to keep working harder and deliver effective services.
- Do not sideline your customers- as you get to understand the cause of the rapid change your business is experiencing and put your business in order by providing the necessary support and encouragement your workers need, also remember your customers and don’t sideline them. Remember that they are one of the major factors that have affected your business for the better, and without their patronage, you wouldn’t be experiencing this growth and expansion you are experiencing now. In the light of this, improve your company’s customer care and service; this would prove to the customers that they are valued and their patronage is not taken lightly.
- Manage your financial resources wisely- this period in your business is a very hectic one because you would be faced with a lot of financial decisions to make. Your business is growing rapidly, demand for your products and services are also on the rise, due to this, expenses would also be on the high side. To aid you manage your finances wisely, carefully draft out a budget and follow it. Before drafting a budget, take note of the income that is currently coming into the business, then draft a budget based on this, and ensure your expenses are not outrageous and you get to save a reasonable amount of money.
- Keep your products in stock- you are at the stage of your business where demands for your products are mostly constant; to enable you meet up with customer’s demands and satisfy them, ensure your products are always in stock by producing ahead and purchasing supplies ahead of time. This would guarantee continuous sales and cash flow in the business and avoid disappointing customers when they demand for your products that are not in stock.
- Sustain growth- if you don’t manage your business growth effectively, you would end up recording growth just for it to crumble overtime. This probability is the reason why entrepreneurs should sustain their business’ growth. They should analyze their businesses to see how they can control it and channel their resources to ensure better cash flow in the business. Abiding by this pattern would enable them create and sustain their business growth. Also, to help you sustain growth in your business, ensure you get the necessary capital to finance your growth, avoid expanding the business too quickly, ensure your employees are working diligently and delivering efficient services that would match with the company’s growth,
- Avoid unnecessary debt- with the sudden and rapid growth a business face, the business owner may be overwhelmed with the feeling that he or she should expand the business and build it up to meet up with the sudden and rapid change; this concept is applicable but only if you have the necessary financing. Some entrepreneurs may be pressured into going into debt in order to meet up with this standard they have set for themselves, but this is an unnecessary debt. If you identify the cause of the rapid growth, you would be able to focus majority of your resources on that aspect that is doing well and overtime, you can build up other aspects of the business. Instead of taking a loan to expand your business all at once and becoming at the mercy of your creditors.
In summary, every business owner’s expectation for their businesses is for them to experience growth, however, if this growth come suddenly and continue rapidly and the business owner is having difficulties managing it, then it can become a big problem. In the light of this, we have discussed 7 ways business owners can handle rapid growth in their businesses. I hope this article has been helpful.
Thanks for reading!