If your business is growing at a steady rate, it's a great sign – you're on your way to success! That does not mean, however, that it's just going to be smooth sailing from here on out. A rapidly expanding business comes with its own set of issues, each of which needs to be addressed if the company is going to succeed. What are they?
More sales does not automatically equal more profit. If you don't have the proper infrastructure in place to manage the growing customer base, you're better off not having made all those sales. It's important for businesses to scale as they grow, making sure not to overload any one department.
Author Chris Zook from HBR reveals some of the signs of overload – maybe things start falling through the cracks, employee satisfaction decreases, bottlenecks appear and strategies become muddled. Luckily, a leader with a strong vision can turn an overload situation around.
2. Losing the focus on customers
In both B2B and B2C environments that grow too quickly, it can be easy to lose focus on the demographic you're trying to appeal to. When so much effort goes into keeping everything in order internally, customers can get lost in the fray, leading to poor experience and potentially a loss of profit.
Customer retention is at the heart of every successful business.
Even if sales are so good that you're constantly winning new customers, maintaining the old ones is arguably more important, says Sageworks chairman Brian Hamilton. Customer retention is at the heart of every successful business, so quickly growing businesses must keep an eye on this.
3. Inconsistency in employee expertise
If there's one thing that a fast-growing company needs, it's more employees – there need to be enough hands on deck to deal with the seemingly exponential to-do list that's racking up. Hiring too many employees, or hiring in big batches, can lead to inconsistencies in employee expertise, particularly if you operate in a niche market.
In cases like these, businesses need to make sure that every member of their team has undergone the same training processes. When each employee is on the same page about company policies, strategies and processes, the day-to-day operations of the organisation will be streamlined.
At Artisan, we offer NZ businesses custom built bespoke training programmes, as well as a number of other training courses, that you can design to optimise your whole team. Reach out to us today for more information!