Starting a new company can be both exciting and anxiety-producing. When business picks up unexpectedly, you can also experience the growing pains that come along with rapid growth. The major challenges that startups face in the growth phase can be tackled if you take the right, proactive steps to ensure your company will be able to meet demand.
While rapid growth may seem like nirvana to any business, it can sink a business if not handled correctly. Rapid growth may mean that you have to quickly hire employees, expand office space and buy new equipment. In some cases, business may pick up before the actual income comes in, leaving you in a financial crunch. The key is to keep funds in reserve to meet this demand during your growth phase and ensure that everything runs seamlessly.
Investing in a temporary workforce, a sales account management team and leased equipment is a good way to make sure you are able to meet the demands of your growing firm.
Recruiting top talent can be a challenge in the growth phase as well. Staffing is easily one of the most costly expenses your company will undertake. It is not enough to simply recruit top talent—your company must take steps to retain that talent. A thorough training program, employee incentives and careful vetting is key to finding and keeping the right person for the job.
Remember that most people are motivated by intrinsic rewards and other non-monetary incentives. Create an employee appreciation program, thank your staff often and develop ways to show them their value to the company.
Maintaining the Company Culture
While the company may have been started as a small operation in a garage or dorm room, rapid growth requires a changing of the culture and structure. Staff who have been with the team from the beginning may find these changes jarring, but there are ways to make the transition run more smoothly.
When growing the company, it helps to create an organizational chart that outlines the roles in each position. This will help your staff understand their place in the organization and better adapt to any changes in the structure.
Watching your business grow quickly can be rewarding, but it can also be challenging. By understanding the most common growing pains that organizations face, you can meet these challenges head on while still running a profitable company.