Running a business is hard enough, but when it starts to grow it can be even more difficult to manage the new challenges that arise.
In this article, we will explore some of the biggest challenges that come with business growth and how you can overcome them for sustained success.
1) More Complex Talent (Human Capital) Needs
As your company grows, you will need to hire more Talented employees for your business.
With the new hires comes a whole host of new needs that come with running a larger workforce.
These include hiring processes and paperwork, benefits administration and training programs.
This is also where any compliance issues may arise from various labor laws.
Fortunately, there are HR software solutions out there that can help you solve the challenges of managing a larger workforce and include things like time and attendance tracking, health insurance, e-signature capabilities and payroll administration.
2) Diverse Customer Demands
As your customer base grows bigger, their needs grow more diverse.
It is important to keep track of new customer demands and maintain strong lines of communication so that you can stay on top of their needs.
One way to do this is by using an automated marketing solution that includes customer relationship management (CRM) tools and allows you to manage all of your communications in one place.
This will help make sure no important details are missed, allowing you to provide the best possible service for everyone involved.
3) Inventory Control
When you are running a small business, it is easy to keep track of inventory.
However, as your company grows bigger and has more products or services on offer, keeping track of the supplies can be difficult.
Overstocking on some products and running out of others can lead to problems with meeting customer demands.
It’s important to prepare for this ahead of time and implement inventory management systems that allow you to monitor your supplies and know exactly when to reorder.
4) New Competitors
As you begin to target new customer demographics and enter new markets, you can expect to face new competition.
This is where your business strategy and marketing plan will come in handy as you look to find the right way to compete with these competitors and keep them from taking away customers.
It’s important to keep an eye on your competitors, but don’t lose focus on your own business.
Focus on what makes you unique so that you can serve your customers better than anyone else.
5) Balancing Quality Against Growth
As your company starts to grow, you may be tempted to cut corners and sacrifice quality for the sake of growth.
However, sacrificing quality is never a good idea when it comes to business.
Instead, look at ways that you can keep up with demand while still maintaining high standards in terms of production or customer service.
You may need additional employees or more efficient processes.
This certainly requires more effort and investment but it’s always better to find ways of growing without sacrificing quality.
6) Systems Breaking Down
As your company continues to grow, you will notice that systems and processes may start to break down.
This is often the result of scaling too quickly without making necessary adjustments along the way such as hiring additional employees or upgrading software and hardware resources.
It’s important to predict which systems will suffer as your business expands so that you can make the necessary changes to keep things running smoothly.
There are many significant challenges associated with business growth, but they can be solved by following the golden rule of growth:
Run the business you want, not the business you have.
It’s important to be prepared for growth before it actually happens so that you can make the necessary changes to all your systems ahead of time and scale up seamlessly for maximum success.
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