Rapid Small Business Growth: The Signs and the Right Moves

Let’s talk about the growth of a small business – not the gradual expansion of a company, but an explosion of success that rockets your business skywards. That’s every small entrepreneur’s dream, right? Not always.

When you are flooded with product/service orders and your business is making all the right moves, you need to have the foresight to think about the future of your business. How are you going to channel this success and avoid a burnout?

Signs that your small business is growing too fast for its own good

• You need to borrow in order to fund excess production costs. This is a sure shot sign that your company has a lot on its plate.

• Your staff has to multi-task like crazy. This means that one person will be doing the job of two. Even you will have to help out when deadlines need to be met.

• Complaints from customers are on the rise. This could mean that your small business is going for quantity more than quality.

A smart entrepreneur will ensure that quick growth doesn’t hamper his company’s future plans. You need to take these changes in your stride and know how to handle pressure (even if it is of the good kind).

If your startup has really taken off, here’s how you should go about your business:

• Hire the right folks. There is nothing better than delegating a job to somebody who is competent enough to handle it. As production and other tasks increase, you will need more time on your hands. Make sure you bring in people who understand what you need and keep your business’ spark alive.

• Increase product/service rates. One reason why you may be getting a lot of customers is because you could be charging marginally lower than others in your field. Increase prices gradually so that customers can value your production efforts. This will help increase the profit margin, as well.

• Keep a close eye on your working capital. Always know what your day-to-day expenses of your business are. This way you can create a fund that can be used, should any unexpected costs come up. Your startup is growing; you don’t want to run out of cash in the middle of an order.

Small businesses have the advantage of personal touch when it comes to customer interaction. Make sure you don’t lose out on that when your company starts growing rapidly.

Republished with Permission from Everything Small Business Journal – http://esbjournal.com.