Cautionary Tips to Manage Rapid Business Growth 2022
Growth: It’s What Every Company Wants to Achieve
Growth is an important goal for every company, especially for a new or small business looking to gain traction. However, too much growth over a brief period can be dangerous. If a business continues to scale without adequate tools and resources to manage it, it won’t be able to sustain itself in the long run.
Here are 19 red flags to watch out for so that you can promptly address them and ensure healthy and sustainable growth for your company:
1. Employees Are Confused by Your Culture
Pause and look at your culture. If the company starts to feel and look as if it has either moved away from its core culture or employees are confused by it, that is a sure sign it is time to slow down and reassess. Growth is great, but growing without an aligned culture will hurt more than not hiring enough people. Get ahead of your culture before it gets ahead of you. – Brooks E. Scott, Merging Path Coaching
2. You Don’t Have Scalable Processes
A lack of process is a clear sign that the company has outgrown its current cycle. If the processes are the same as those for a small business, and not for a scaling business, this is a good indicator of trouble. – Andrew Constable, Visualise Solutions
3. Your Quality Standards Aren’t Being Met
One way to tell if your company is growing too quickly is to continually assess the quality of service through customer feedback. If established quality standards are not where you expect them to be, that is an indicator that you need to address. – Brent McHugh, Christar International
4. Senior Hires Don’t Know How to Be Successful
If your experienced hires aren’t clear on how to succeed and don’t know what their decision rights and success metrics are, you’re moving too fast. It’s important to define roles and integrate new hires properly. – Andrew Blum, The Trium Group
5. Your Resources Are Stretched Too Thin
If you’re stretching your resources (cash, people, service, and quality) beyond your normal standards, it’s time to slow down. Focus on providing first-class service to clients while upgrading for the long term. – Jay McDonald, Middleton McDonald Group, Inc.
6. You Don’t Have Systems to Manage and Support Growth
Businesses often think they can wait to build systems until they need them. By the time you need the systems, it’s too late. Check your systems and ask yourself, “What will break if we grow?” – Debra Russell, Debra Russell Coaching, LLC
7. Employees Have Lost Sight of Your Culture
Rapid growth can disconnect employees from company culture. Create cultural ambassadors to carry the culture banner throughout the company. This ensures employees stay connected and aligned. – Ron Young, Trove, Inc.
8. You’re Taking on Business You Can’t Handle
It’s not good for business to overload your employees and make promises to clients that are impossible to fulfill. Proper planning and staffing are key to accommodating growth. – Barbara Adams, CareerPro Global, Inc.
9. You’re Not Fulfilling Promises to Customers
When customer promises go unfulfilled, more clarity and structure are needed. Well-defined vision, values, structure, and accountability provide focus and clarity to a growing team. – Sheryl Lyons, Culture Spark LLC
10. Team Morale Is Low
Morale increases when employees feel supported by their company. Invest in team coaching to address issues, strengthen bonds, and improve performance. – David Taylor-Klaus, DTK Coaching, LLC
11. The Wheels Are Coming Off the Bus
Rapid growth can cause frustration, gossip, employee burnout, and missed tasks. Watch for these indicators and address them early to prevent long-term issues. – Natasha Ganem, Lion Leadership
12. You See a Downturn in Innovation
Creativity and innovation decline when staff are overwhelmed by the frantic pace of growth. Create a better support system to allow space for creative thinking. – Erin Urban, UPPSolutions, LLC
13. You Have a False Sense of Complacency and Ego
Rapid growth can lead to complacency and an overestimation of capabilities. Seek feedback to identify blind spots and stay grounded in your growth journey. – Venkataraman Subramanyan, Tripura Multinational
14. There’s a Proliferation of Subpar Middle Management
A rush to fill roles can lead to poor hiring decisions, especially in middle management. This can result in inefficiencies and increased costs over time. – Henryk Krajewski, Worxera, Inc.
15. Deadlines Are Missed and Turnover Is Increasing
Missed deadlines, employee burnout, and increased turnover indicate your company may be growing too fast without staying focused and grounded. – Shelley Smith, Premier Rapport
16. Your Business Expenses Are Growing Faster Than Revenues
If your expenses are outpacing revenue, your business may face cash flow problems. Ensure revenue can sustain business growth to avoid financial troubles. – Michael Cagle, Vision Business Services
17. Vendors and Suppliers Cannot Keep Up
Rapid growth can overwhelm suppliers, leading to production issues. Consider diversifying suppliers or seeking more reliable partners to manage increased demand. – Michael Cagle, Vision Business Services
18. After a Treacherous Pandemic Economy – What’s Next?
Post-pandemic conditions may challenge businesses. Evaluate your industry, market position, and strategy carefully before continuing aggressive growth. – Michael Cagle, Vision Business Services
19. Your Emphasis Shifts from Quality to Quantity
Prioritizing quantity over quality can harm your reputation and lead to a loss of customers. Focus on delivering quality and value to sustain success. – Michael Cagle, Vision Business Services