The pain of business growth is a very real thing. Growth is necessary for the survival of a business. Most of the large businesses are those that started small and grew with time and opportunity. But growth brings its own share of challenges and problems. Let’s look at some pains of growth and tips to overcome them.
Defining a clear vision for the future.
Your business may have started with an idea but growing it requires a vision and strategic planning. If there is more than one founder in your business then everyone needs to agree on the way forward. Your vision will be the guiding statement for new employees. The small business owner needs to transform into a leader with a vision for the successful growth of a business.
Hiring and retaining talent
A growing business needs more employees. You will have to streamline your operations, delegate work and create new departments. When the teams grow you will have to make efforts to ensure proper coordination between departments to achieve your overall targets.
Once you have a clear vision, you should be careful to hire people who are in line with your goals. You may even have to bring in people for leadership positions. It is possible to start a business with a single skill but you require multiple skills to manage a growing business.
You will have to make efforts to retain talented people. Talented people need to feel valued, and they look for growth opportunities.
Data and automation
Small entrepreneurs often rely on their instincts for major business decisions. It works when there are fewer people involved. But once the business grows and more people come in, you will require hardcore data to back your decisions. Data collected from your business will also help you to reduce unnecessary expenses and create an environment conducive to growth.
A growing business will require an increase in investment in technology. Whether it is accounting, HR or sales teams, you will have to equip your staff with the latest technological tools.
Retaining and growing customers
Your business will need more customers to sustain its growth. Getting feedback from your existing customers is a good method to make improvement in your products and services so that it can attract new customers. You will have to focus more on customer satisfaction and also spend more on marketing and advertising to expand your customer base.
You may be tempted to reduce prices to attract customers but reducing prices will reduce cash flow and may cause losses. Customer loyalty program, excellent customer service and target marketing are some methods to attract new customers.
Cash flow challenges
A growing business needs cash. Whether it is recruiting new people, switching to new technology or increasing production, you will have to arrange for sufficient capital to meet all your requirements. Once you have increased your customers, you can raise your product prices which will generate cash. Good accounting software will help you to manage the financial issues faced by your expanding business.
Ainsworth Accounting Solutions are here to help you with any of your business accounting needs including the pain of business growth, so get in touch and we’d be happy to speak with you. Simply contact us today to take the next step!
