It has a dopamine-kind of effect on your mind when your business starts to grow. The feeling of success can further boost your morale and lead you to introduce more changes to your organization. From hiring new candidates to running innovative campaigns to tying up with more partners, everything can look exciting. The new energy may not allow you to slow down even for a while. Scaling up can be motivating; however, you must realize that growing up at an unprecedented pace can be extremely risky.

As they say, too much of anything is bad. Hence, there is a need to pause and review what you do and why. Before matters slip out of control, look for warnings that can be everywhere, but you never cared about them. Here are some common scenarios that most companies ignore in a race to grow faster and, eventually, end up paying a higher price.

The possible signs things are not right byMike Giannulis

The new hires

Your company may have just received a big round of funding, and investors recommend you get more people on board. Investors want you to manage your business responsibly regardless of its size and growth. You can start hiring people before the work comes to you because you are sure the new project is yours. But do you realize what will happen if the deal gets suddenly canceled for whatever reasons? You have to be careful with operations and its role in new business if you wish to have sustained growth.

The cash flow issue

Most businesses struggle in this area a lot because they need money for everything. In the absence of adequate funds, not only scaling up but meeting daily operations costs can also become challenging. You may witness a massive demand for your service or product in the market. But you need money to fulfill it. If you spend from your reserves to meet the new requirements without waiting for the invoices to get cleared, you can face a cash gap. You can fail to cover your business expenses and put your image at risk in the market. Therefore, it is crucial to be fierce with the cash flow. If you don't have cash, look for financing solutions or other avenues to avoid any trouble in this area.

The business plan

There are very few business owners who realize the risk of growing too quickly. Rapid expansion can become a challenge in the absence of a clear strategy or vision. Hence, it is critical to keep an eye on your growth trajectory and understand where you are heading. Have a solid plan that lays a reliable foundation for it and helps you to assimilate the necessary resources.

 

The balance factor

Many businesses bite the dust because of attempting to scale up prematurely. If you want steady growth for your company, you must pay attention to the five main components or pillars. These include business model, customers, product/ service, finances, and team; all of these need to be proportionate to each other in terms of performance to attain success.

The operations VS customers

Another sign that shows you can be on the wrong track is when most of your leadership meetings discuss internal operations and not customers. For this, you have to see what happened in the last five meets. The picture can be transparent. As a course correction, you can bring focus on your customers and spend less time on internal matters. You have to be agile as your product gets market recognition, move based on customer behavior, and then grow for the sticky customers.

The value delivery

Successful entrepreneurs like Mike Giannulis believe that the chances of failure increase when you scale up rapidly without the proper supporting framework. Your market share can reduce if you don’t deliver value. Eventually, your struggles can also increase. Hence, it is necessary to pay attention to core deliverables. If these are ready, you shall have no issues with growth.

The compromise

In the atmosphere where rapid growth becomes everything, it is not rare for decision-makers to miss out on areas where they shined the most. Many companies don’t pay enough heed to product maintenance, customers, and services when their priority shifts. They get busy with the new focus. If you are mindful, you will not allow this to happen. You will review operations, performance, and productivity across different levels to be in tune with the ground reality.

The difficulty in keeping up

When you grow uncontrollably, the pressure on you and your staff can be immense. It can eventually manifest through different areas, such as compromised quality of customer support, non-completion of tasks without follow-ups, hassled or delayed product and service delivery, outdated systems and processes, etc. In this scenario, you can pause your marketing and sales efforts until you are ready to deal with the volume and fix them.

The customer complaints

Did you know about the rising number of complaints from your customers? Your disgruntled and happy users should be able to reach you effortlessly. Their feedback plays a significant role in determining whether you are on the right path or not. If you don't track this, the impact will reflect on dwindling revenues. So, make time for your customers. When you listen to them, you realize where you are going wrong and what you can do to improve their experiences. It is quite vital for stability. If you are stable, your growth will find a strong base to support it. Otherwise, it will not take time to reverse.

Aiming for the next level is not the incorrect thing. But lopsided attention can ruin everything you built so far. Before you eye an exponential growth for your business, it is essential to gradually introduce necessary systems and processes. Your finances have to be healthy too. As you build in these areas with a customer-friendly approach, you get a large room to bat for a jump in sales and revenues. And, this time, it can be sustainable unless something drastic hits and disrupts the market conditions.

Author's Bio: 

I am Lucy Jones