07/ 11/ 2005
by Jeffrey Moses
During rapid growth periods, small-business managers face an array of challenges, not the least of which is making sure existing employees stay involved and satisfied as new employees are hired.
The following tips offer a proven basis for successful expansion, even when the speed of growth reaches near crisis levels.
1. Remember, during periods of rapid expansion, maintaining cash flow is all-important. Don’t trip over you own success by expanding your marketing too quickly or by taking on too many new employees. Work closely with business advisers and lenders to make sure your cash flow stays even. Don’t let cash outflow outpace revenue, no matter how tempting.
2. Plan ahead so you’re not forced to borrow at the last minute. That’s when mistakes happen.
3. Don’t be too quick to abandon or even alter your basic business plan. Remember, it got you to the point of rapid growth, so don’t ditch it just because you made it when growth was only a dream. Entrepreneurs usually have many diverse ideas, and success gives them the chance to jump from one thing to another just as they’ve always dreamed of doing. Fight this inclination. Stick with the basics and diversify only when it makes practical sense.
4. Don’t let customer care suffer. Rather than spending energy and resources on new products or services, put added attention on streamlining internal operations. Add customer-care personnel before adding new marketing staff. As a company’s sales go up, it’s vital to maintain coordination within the company so customers (and vendors) continue to experience excellent service.
5. Just as you should plan ahead for borrowing, you should look as far into the future as possible when considering new employees. Don’t be forced to hire “yesterday.” Ramp up your human resources department and give it time to locate, interview and select qualified individuals who will fit with the company’s overall culture.
6. Be aware that adding new staff may cause a rift among employees who have been with the company from the start. Don’t alienate your tried and true people. Always favor experience and loyalty –– and reward it. Promote from within when you can. When you can’t, make sure existing employees understand why. Nothing is more irritating for a long-term employee than to suddenly have a new supervisor who knows little about the work being done.
7. Make it easy for employees at all levels to communicate with upper management, and ideally, with the company’s owners. This assures that they can air their gripes and offer potentially invaluable suggestions as growth occurs.
One final word: Remember, growth in your small business should be a positive experience. Following these few simple tips will ensure that it is.
