Successful companies have reached the position they are in after facing several challenges in the growth process. What sets them apart from companies which were not able to survive or reach similar success levels is their approach to the very concept of growth. The companies which accepted the growth and had to take risks to make this change, are the ones which come out on top and were able to succeed. One has to, of course, know what these growth challenges which entrepreneurs have to face are and how we can overcome them.
Growth can overpower you – Control growth
A rapidly growing organization needs control systems, organized processes, and manpower to handle them. An unbridled growth is often harmful to the business as growth should take place at a steady pace, or else, it may lead to financial crisis, decline of quality and may damage one’s reputation in the market. If improperly handled, business owners may be over whelmed by this growth. When such a situation occurs, it is advisable to ease the hectic pace of activities and let the rest of the processes and the people to catch up with the growth. Successful leaders know when to ease the pressure on the accelerator.
Accepting only the right opportunities
Opportunities are galore for growing businesses, but the successful entrepreneur knows which ones are the right ones for the business. The best opportunities are those which enhance the company’s existing strengths and add customer value to its services or products. If an opportunity does not meet this criterion, a firm ‘no’ will be the right thing to do. Trying to please one and all at once, may lead to the deterioration of quality of the service or product. Sharp focus on your main business goal and in-distracted progress towards that target, is what makes a business owner successful.
Learn to loosen the reins – Delegate
When there is growth in the business, it is a foregone conclusion that the entrepreneur also grows along with it. In the beginning, you could handle it all alone , but now it is time to take the assistance of others to help serve customers better. The entrepreneur thus has to delegate duties to subordinates and make the transition from a doer to a manager or leader. It is common that most entrepreneurs find it hard to hand over any aspect of control to others but it is the need of the hour to delegate and learn to rely on others for accomplishment of certain tasks.
Enlist the best – Hire talent that takes you forward
Wrong hiring decisions can prove to be a costly affair and can create quality, financial and control risks for small businesses. When they are faced with growth, entrepreneurs are overwhelmed and in panic they hire employees too quickly, making on-the-spot decisions based on insufficient data. Several entrepreneurs who had made this mistake of hiring too fast expressed the opinion that they should have taken a more gradual approach and spent time in assessing the candidates more thoroughly. They were able to make much better recruiting decisions when they learned to hire taking into consideration the competencies and track record of the applicants, conducted multiple interviews through HR agencies, established a probationary period, and provided mentors and guidance for new employees and encouraged well established, trusted employees to make hiring recommendations.
Control the flow of Cash
Successful entrepreneurs never forget the rule that cash has to be managed on a daily basis however rapid the growth may be. Monitoring Cash Flow during the growth period is of utmost importance. In most cases, the process of growth requires investments in manpower, new technology and additional supplies even before the business receives any cash from sales. Entrepreneurs have to understand just how much growth they can afford and proceed accordingly. Above all, maintaining perfect accounting practices and managing your accounts well, will see you through successfully.
Success is an ongoing process of learning and adaptation
Successful entrepreneurs and their employees are always ready to adapt and learn new practices. There is no guarantee that things will always go smoothly and they are not sure of what they would have to experience in the future. The growth of your business will involve ups and downs, spikes, changes, and downturns. It is essential that you are prepared and continuously adapt and learn to deal with the challenges. If you are not, the speed may spin you out of gear.
Taking heed of these important points will place your business on the path of success. The decision to embrace growth should be made only after evaluating the pros and cons. Growth should not be taken up without a sound reason and basis. Have your eyes on your goal and build your business to reach that goal by constantly improving your business. You will realize that you can face the challenges of business growth with more confidence and with greater success.
Successful companies have reached the position they are in after facing several challenges in the growth process. What sets them apart from companies which were not able to survive or reach similar success levels is their approach to the very concept of growth. A rapidly growing organization needs control systems, organized processes, and manpower to handle them. An unbridled growth is often harmful to the business as growth should take place at a steady pace, or else, it may lead to financial crisis, decline of quality and may damage one’s reputation in the market.