The BizFilings blog covering business tips and trends.
Explosive Growth: How it can Destroy Your Business
Published on Sep 25, 2012
Read our article, 'Explosive Growth: How it can Destroy Your Business' at 'Time to Start Up,' the small business blog by BizFilings.
By Adam Toren
It’s every entrepreneur’s dream. You wake up and realize that your business is growing by leaps and bounds. You’re already starting to celebrate when you start to fall a little bit behind. You brush it off - you’re just not used to this new workload. But you don’t catch up. Instead, the work piles on and piles on, problems arise that you’re not quite ready for, and you fall further behind. Before you know it, the business boom is coming to an end before you could really capitalize on it.
Vulnerable When You’re Just Starting
When you’re building your business from the ground up, it’s easy to get excited. This excitement is great. You’ll apply yourself daily to the tasks at hand. Still, you may be unprepared for unprecedented growth. The excitement may motivate you to take on a little bit more than you can handle. The thrill of the challenge could disturb your focus and careful planning.
It’s obvious, but just because you have technically profited, you may lack the cash flow to keep running your business if unexpected costs arise. This is evident especially during the beginning of your business. You may not yet have a backup fund to rely on in case of emergencies. You’ll need to keep a watchful eye on your business expenses and fees. Stick to your budgetary guns.
Don’t overlook the value of your time. After all, you didn’t start your own business be bogged down in sometimes trivial work. If you’re experiencing explosive growth, it’s going to become impossible to personally perform every operation of day-to-day tasks. It’s easy to be left with an unbearable workload if you don’t anticipate the need for some extra help. Also, the hiring process sometimes takes longer than you may think. Ideally, you’ll want to know employees you can trust before you need to hire them.
It’s great to have dozens of eggs in several baskets, but if one particular facet of your business is succeeding tremendously, you may have to really pinpoint your focus to take advantage. It can be tempting to try and accomplish everything at once, but it may blow up in your face. Don’t try to be a jack-of-all-trades when you’re on the way to becoming a master of one.
Explosive growth can seriously damage your business if you’re caught unaware. Of course, none of this should dissuade you. Obviously, explosive growth is what you’re after in the first place. You shouldn’t be weighed down by fear. By having a game plan, you can turn fear into an advantage. Focus on what’s working. Have an emergency fund saved up if you can. Use your networking skills to make resourceful connections who will do some quality work for you in a jam.
They say the best defense is a good offense. Don’t wait for growth to surprise you. Make plans forecasting your reaction to rapid increases in business. By expecting growth, you’ll be in a great position when it does arrive. The drive to realize future goals will give you focus and determination. You’ll start to fulfill your own prophecy.