Growth is the name of the game

Published in Add-On, Business on 10 April 2015 by Ashleigh Lambert


In this guest blog, Laura Beatrix Green from MarketInvoice discusses the challenges of growth, how to avoid them and how those unexpected happenings can be the making of you. 

Recent years have seen record levels of new business start-ups in the UK, meaning there are hundreds of thousands of new entrepreneurs looking to make their venture a big success. The relative strength of the UK economy means this is a great time to be growing a business.

Investing for and managing rapid growth creates different challenges for all businesses, but there are some basics that apply universally. For many business owners, growth isn’t a priority. For some it isn’t even a distant wish. They’re happy with a comfortable stasis that pays the bills and brings in a nice income. For others, growth is the name of the game, follow these tips to avoid the pitfalls that could accompany your success.

 

Smooth operator

As you grow (or ideally, before) it’s important to implement processes. Yes, you heard right, an actual way of doing things that is carried out the same every time. It all sounds a bit corporate and not at all cool, but having processes and a good system for monitoring performance and data is crucial.

When you’re smaller, slap dash or emergency methods work fine (and are totally necessary) but it’s important to note that this becomes highly inefficient in a larger business. Fine tune your processes and consult team members who do those jobs. Then get things in writing to make it easier when you train new staff.

Visibility and forecasting are essential. Make data your business. Ensure team heads are helping you to monitor each aspect of your company. Knowing your data and numbers means that you can clearly identify where problem areas are and tackle them.

Cashflow

No matter the route to growth, you’ve got to keep an eye on those finances. You might be able to sell more products at a good profit, but that’s no good if you won’t have the working capital to pay staff and suppliers. Long payment terms or a bad month of sales can take on a whole new meaning if you’ve overstretched your finances or aren’t in control of your cashflow.

Don’t count your chickens

So, your growth strategy is going well. You’ve broken even, scaled-up processes and staff or maybe even started turning profit. As amazing as any taste of success is, a common pitfall is to get over excited. We know that it’s easy when you’ve worked so hard, but don’t go over the top on a success-fuelled spending spree. Although growth does require reinvestment, stick to things you actually need and have a clear sense of priorities, whether that’s new staff members or equipment.

Management

Hiring people that you have trust in to do the jobs you’ve hired them to do is essential. Once you’ve grown to a size that necessitates the help of others, you must resist the urge to micro-manage or remain too involved. Opt out of meetings and become an expert delegator.

Building a team of high quality experts can bring new perspectives and ideas to the table that can help you achieve your growth ambitions.

Planning

Super-charging the growth of your business is a big challenge with lots of hurdles along the way. The margins between success and failure can be slim. To maximise your chances of success, you have to have a clear plan and processes in place to know where the growth is coming from and how you’ll manage it if it comes.

Don’t worry though – it’s not all doom and gloom. Done right, it’s a really exciting time for a business. Happy growth spurt!The relative strength of the UK economy means this is a great time to be growing a business.

Investing for and managing rapid growth creates different challenges for all businesses, but there are some basics that apply universally. For many business owners, growth isn’t a priority. For some it isn’t even a distant wish. They’re happy with a comfortable stasis that pays the bills and brings in a nice income. For others, growth is the name of the game, follow these tips to avoid the pitfalls that could accompany your success.