Every CEO dreams of growth, but growing pains are a very real thing in business.
In fact, rapid growth is often unsustainable and does more harm than good.
Business growth must be sustainable, otherwise your systems, processors and structures may begin to break and your finances will suffer.
Business growth is a bit like driving a car.
You need some speed but faster isn’t always better.
Revving towards your destination too fast puts pressure on your engine and may require you to slam on the brakes very suddenly.
The best way to get where you need to be is to drive at a steady pace that you can maintain without causing engine failure.
Let’s take a look at three major symptoms that your business is growing too fast:
#1 – Cash Flow Problems
Business growth can put a serious strain on your cash flow.
As you gain more customers, it’s easy to lose track of your invoices meaning that you get paid late, and sometimes not at all.
In turn, this can often lead you to miss supplier, vendor or staff payments.
If you need to wait for your customers to pay you before you can pay the people you owe, it’s a sign that something is wrong with your cash flow management.
Simple financial systems may suffice during the early stages of your business, but as your company grows bigger and more complex, you require more advanced systems to stay on top of your finances.
Losing track of your sales, payroll and invoicing will land you in a huge financial mess, so it’s important to enlist an experienced financial coach or consultant to help you manage your money.
#2 – Poor Talent Management
If you haven’t adequately prepared for growth then a sudden spurt means that you will need to hire someone new ASAP.
However, hiring mistakes can be costly and this means bad hires are a significant waste of money.
If you’re growing rapidly and hastily hiring new employees every other week, then it stands to reason that many of them will be a poor fit for your company culture.
This is a sure sign that you’re growing at an unsustainable rate and need to change your approach.
If this is the case for your business, stop hiring new in-house employees and try outsourcing certain tasks.
You may find that you don’t actually need a full-time hire for every role and you won’t waste as much money if a virtual employee doesn’t turn out to be a good fit.
If you do still need to hire a full-time employee, you will at least have less urgency and be able to take your time to find the perfect match.
#3 – Your Customer Value (Or Promise) is Suffering
If you are struggling to keep up with demand then the likelihood is that your customer service is suffering this in turn diminishes your Customer Value and Customer begin to doubt your reliability.
Rapid growth often forces employees to multitask, dividing their attention and reducing their ability to deliver a great customer experience.
However, if your customer service falls through the cracks then your business is likely to suffer for it.
Rapid business growth often leads to a host of problems, including cash flow issues and staff shortages.
These are all signs that you need to change your approach or risk going under.
If you’re experiencing any of these symptoms, take some time to reassess your strategy.
Remember that steady and sustainable growth beats speed any day.
If you want to Maximize your Profits and get Cash Flow under control, come and have a chat with CFO Coach today.
We will map out your unique roadmap and help you look for the opportunities to push for a sustainable Cash flow.
Get in touch with me to learn more by SMS on +260967924720 or email to Irfan.Sayed@cfocoach.co.zm or Visit www.cfocoach.co.zm
Alternatively you can choose your preferred date to set up a free 15 minute Power Discovery Call at your convenience by clicking the link – CFO Coach.