Is Your Small Business Growing Too Fast?
Clearly, when you run a business you want to make sure that it grows smoothly and easily. But there is a difference between that and when a business grows suddenly and somewhat unexpectedly. If you are finding that happening with your business, it can actually be a little worrying to have to try and deal with. After all, you might not have the resources, energy or determination yet to be able to match that sudden success, and that can be something of a concern. The good news is that there is plenty you can do about it, and in this article we are going to discuss some of the better ways of approaching this particular issue. Of course, all growth is a good thing, but if you find that your business is growing a little too fast, then there are some things you might want to do to catch up with it.
One of the most common problems that occur when a business suddenly grows too fast is that you might not have the cashflow to be able to deal with the new influx of customers that you suddenly have. That means you can’t step up to match the growing demand that your business is seeing. While that might sound like a nice problem to have, in truth it can be enough to destroy a business, as if you then fail to deal properly with all those new customers, you will find that your business might soon take a dramatic downturn. The important lesson there is that you can’t take anything for granted in business – even during times of incredible growth, there is still always the possibility that you will crash down to earth in the blink of an eye.
But you will need to work on improving your cashflow if you hope to be able to at least try and match the influx of customers, and that can be a hard thing to achieve so quickly. It helps to strip back your processes and make them as efficient as possible, as every penny you save there will ultimately help you out. You might also want to think about accounting for such changes in cashflow by planning out and thinking about any obstacles which might occur, and being ready for them in advance. That should mean that you can stave off the worst of it, and if nothing else you will be able to get your business back to ordinary levels. If you really succeed here, you will have successfully taken on many more customers, with all the great benefits that that situation will surely bring.
Hold Off New Customers
You should remember that, if you suddenly have a lot of demand for your products or services, you are always within your power to put a hold on new customers until such time that you are actually ready to deal with them. While that might sound a little unusual, if you think about it you have probably been on the receiving end of this as a customer at some point, and it does actually make perfect sense. Simply saying to people that you are sorry, but you need to stop production or halt starting new account for a while, will show that you are respectful and grateful for their interest, but that you simply can’t do it right now. The honesty is what makes it work, and then you can work on ensuring that you are able to take those people on when the time comes. You might even find that the wait makes people want it even more, so that is certainly something to think about. You should never feel bad about holding customers off – it is much better than trying to take them on board and not being able to give them everything that they deserve or would want to have from you.
Deal With Increased Calls
You are bound to find that you get a lot more calls from customers and potential customers when your business is suddenly expanding, so you need to be able to deal with that as best as you can. There are a lot of things you can do to make that a little easier, and the good news is that there is no such thing as too many phone calls as long as you know what you are doing. It might be that you want to pay for your staff to work slightly longer hours so that you can extend the operating hours on the phones. Or it could be a lot easier and cheaper to simply outsource all this to an affordable answering service, thereby ensuring that all customers are dealt with promptly and professionally, as you try to match the sudden recent growth in your business with new resources.
Get Back On Product Development
If the issue is that you are suddenly overselling on stock, then you are going to need to find a way to produce more and more. That might be a case of simply placing more orders with the manufacturers, but you will probably also find that you are going to have to return to the drawing board and think about improving your product development in some way. Chances are, your initial product is not designed in the most efficient manner, and it is probably true that you could make it considerably quicker to build or create. So get together with your developers and engineers and try to work out how you can make that happen. That should mean that you have much more in the way of products being shifted, which will mean fewer disappointed customers too.
There are clearly a lot of ways in which a business can suddenly grow too fast – but there is always a matching solution to ensure that you can work around it and make it considerably easier on yourself. If you put the effort in and you know what you are doing, you should be able to match the sudden growth, so that everyone is happy.