The initial thought of growing your business quickly sounds almost too good to be true. After all, with all the terrifying statistics about business failures, the prospect of progress sounds utterly fantastic!
Of course, there’s much more to this than meets the eye. Some businesses are in fantastic shape, only to attempt to supercharge their growth and then put themselves in trouble.
As the title of today’s article may have given away, we’re going to dive into some methods that can help you avoid becoming part of this group. So, without further ado, here are three ways to avoid growing your business too fast:
Don’t underestimate the importance of cash flow
One of the main issues businesses face when they try to grow too quickly is that they don’t have the necessary cash flow to support this expansion. As such, you must take the time to ensure that your cash flow is in good shape before you start trying to grow at an accelerated rate.
In truth, this is all about staying organised. Are your customers paying you on time? If not, start being strict with your payment terms. Or is the problem on the other side of the fence, and are your suppliers being too pushy with short payment terms? There are all sorts of reasons behind poor cash flow management, but it’s a common problem for businesses that have grown too quickly.
Don’t try to do everything yourself
Another mistake that business owners make when trying to grow too quickly is that they try to do everything themselves.
This is understandable to a certain extent, as it can be difficult to let go of control when you’re used to running things a certain way. However, it’s important to remember that you can’t do everything on your own and that you’ll need to start delegating tasks if you want your business to scale.
If you fall foul of this trap, you’ll run into all sorts of issues when you’ve grown – and you don’t have the time, or the resources within the rest of your business, to carry out the new tasks.
Don’t be afraid to say no
Finally, let’s talk about saying no. It’s something that many of us are reluctant to do, especially when we’re desperately trying to get customers or seize opportunities in the early days. Unfortunately, there are times and places where it needs to be done.
A great opportunity may land on your desk, but if you don’t have the resources to execute it, try and think about the bigger picture. Sure, it might result in an instant burst of cash – but are you risking your reputation by biting off more than you can chew?
Every growth decision will have consequences. It’s not just the bigger office; it’s the associated insurance costs that come with it. Or, it’s not just the order from the big corporation; it’s the long payment terms they’re insisting on.
It’s all about analysing every decision in detail rather than grabbing every opportunity that comes your way.