5 Simple Tips to Manage Rapid Business Growth

When most entrepreneurs think of business growth, their mind first jumps to the chance for additional commitments, more lucrative contracts, and new talent. However, the truth is that the opportunity for growth can quickly become a major pitfall for startups—even to the point of business failure, in some cases.

Unfortunately, scaling a business isn’t an easy prospect, even for experienced entrepreneurs. If you want to make sure your opportunity for growth doesn’t become an insurmountable obstacle, you’ll need to plan well in advance. Here are the strategies to keep in mind when it comes to proper business management for rapid growth.

1. Set Clear Objectives to Manage Growth

Business growth is a great thing—as long as it’s planned well. To make sure you’re growing in ways that matter, and that you have strategies in place to account for and enhance this growth, you’ll need to lay down some goals.

The easiest way to do this is to consider a few key KPIs you’d like to hit. This may mean setting a desired gross margin you want to achieve, or ramping up your customer retention rates.

2. Consider Your Financial Needs

From there, decide what you’ll need to do in order to reach these metrics in terms of capital.

Analyze your cash flow to determine your current and future predicted requirements. This can help you understand whether you’ll need to seek additional financing or to restructure old debts to pave the way for your growth.

3. Hire the Right Talent

If you’re like most businesses, growing your company will mean finding new talent—a prospect you shouldn’t take lightly, even in a time crunch. Hiring the right employees, especially for smaller startups, can mean the difference between success and failure. Consider your prospective hires’ skills as well as their cultural fit.

4. Prepare to Scale Up

Strategies that worked well for your smaller business may not be the right ones for a larger company.

In most cases, you’ll need to reconsider your company structure and the duties of your employees from the top down as you grow. You’ll also want to establish clear-cut processes to help new hires and veteran team members alike stay on the same page as your systems change. In addition, you’ll want to consider adopting new technologies to help your team organize and streamline your resources and communications, from more web servers to new CRM software.

5. Find Mentors With Experience in Rapid Growth

For smaller startups and entrepreneurs who are new to leading a business through a period of accelerated growth, it can be crucial to find veteran mentors instead of muddling through on your own. The right help can allow you to manage growth with less risk, equipping you with the tools you need to succeed. Seek help from resources like the Clear Start accelerator program, for example, to partner with a team that’s experienced in helping startups grow fast.

Rise to Meet the Challenge of Business Growth

The truth is, business growth is paradoxically both a dangerous prospect and a major opportunity. Balancing the challenge of rapid growth against the potential for additional customers, revenue, and market visibility can be difficult—but taking steps to plan with care can help minimize your risk. As you work to strategically grow your business, be sure to follow the steps above for more success!

Looking for more of the helpful tips and tricks you need for business and beyond? Be sure to take a look at our other guides for additional insights.