Is your business expanding past its capacity for growth? Rapid growth can hide weaknesses and shortcomings in your business without you realizing it. The increased sales can be a mirage of success while at the same time enlarging shortcomings.
Here are a few ways to know when your business is growing too quickly and what you can do before it’s too late.
An Increase in Negative Feedback
Keep up with what customers say about your business. If the positive feedback you’re accustomed to has suddenly turned negative, there’s a reason why. Maybe your customer service team needs retraining, or the quality of your product has decreased due to the rapid increase in sales.
Customer complaints are a way to learn from mistakes and improve your business. Listen to them and respond appropriately.
Can’t Keep Track of Finances
As a small business, it’s fairly easy to know where your money is coming from and where it’s going. When your business starts growing out of control, it’s almost impossible to keep track of these finances in your head.
Having a solid understanding of your cash flow is integral to avoiding costly mistakes. One way to manage this is to invest in an accountant or hire a bookkeeper. If you prefer to handle the finances yourself, invest in user-friendly accounting software.
Struggling to Keep Up
If the hours seem endless and the work never-ending, there’s a chance that your company is achieving growth it can’t sustain. Stretching yourself and your employees too thin will spell disaster for a company. It also leads to chaos in your work environment, which can cause good and loyal employees to quit.
When your company is growing too fast, it’s not unusual for good leadership teams to falter where they used to succeed. When your team is small, it’s easy to have a relaxed work environment. However, as your company grows, a laissez-faire attitude won’t suffice.
Avoid this by establishing strong operations and goals from the get-go. Please make sure all of your employees are aware of them and actively work towards them.
Losing Sight of Your Core Values
Growth is great for a business, but not when it comes at the expense of your business’s core values. When your capital is faltering, you’re short-staffed, and your customer feedback is all negative, you are no longer achieving sustainable growth.
If this is happening to your company, take a step back. When the heart and culture of your company is being broken down, your business is at risk.
Sit down with your staff and revisit the core values that encouraged you to start your business. Work with them to remember the initial goals and ideals of your company and take it from there.
Feelings of Burn-Out
A little bit of anxiety is synonymous with entrepreneurship. However, if you’re no longer excited by the prospect of new clients and more business, your company might be growing too rapidly.
Don’t let yourself be fooled by the glamour that comes with ultra-fast growth. If something doesn’t feel right, take a step back and get a handle on your business.