Rapid business growth is an achievement. After all, it indicates that the company is going in the right direction, has a grip on its value proposition and has an up-to-date offer that appeals to customers. However, higher sales is not a time to sit back and maintain the status quo.
While the company is currently operating smoothly, there is no guarantee that this success will continue to sustain itself without intervention. As experts, the members of gotechbusiness.com Business Council know the steps that will help you set up a business for long-term success and the pitfalls of rapid growth. Below, 17 all of them share a factor that leaders often overlook when their business is growing rapidly and how to handle it.
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1. A plan for scaling up
Congratulations on achieving rapid growth, now the fun begins trying to keep the wheels on the car as it goes faster. Having a scale-up plan to support growth at a healthy pace is essential for businesses and often overlooked. This plan should identify the critical business processes required to support rapid growth and enable the organization to function. – Paula Skokowski, Oxford Angel Fund
2. Organizational Structure
One factor that companies often overlook during rapid growth is the organizational structure. Without structure, leaders risk losing the culture and values the company stands for. Rapid growth makes it difficult for leaders to prioritize tasks and manage resources effectively. This can lead to missed deadlines, confusion and a sense of chaos within the team. – Brandon Pena, 787 Coffee
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3. Rising costs
An often overlooked factor is higher operating costs and organizational structure due to increased sales. I think it’s important to create a plateau for the company and prepare for the next growth without preparing for unreasonable revenue growth. – Karita Takahisa, Unite Platform AG
4. Accurate financial projections
The importance of accurate financial projections should be taken into account. Map out where and when you will invest in your company. Forecasts are essential for every part of your business in the face of rapid growth, from the costs of maintaining your infrastructure and the salaries of your employees to your service or product costs. – Kelly Highney, Bug bite thing
5. The need to grow the team
In the face of rapid growth, many companies overlook the need to scale their team and operations accordingly. Instead, try a grow-consolidate-grow approach. Leaders must prioritize hiring, training and retaining employees and implementing effective practices to support scaling. Transparent and frequent communication about the company’s goals, values and expectations is required. – Nikhil Maini, Synergogy
6. Maintain corporate culture
One factor that many companies overlook during rapid growth is maintaining a strong company culture. As teams grow and new hires are added, it is critical to ensure that the company’s core values and vision are consistently communicated and upheld. Leaders can address this by emphasizing the importance of cultural fit during the hiring process and by providing training and mentorship. – Fabrice Testa, Maana Electric
7. Hiring too fast
One of the most common mistakes companies make during rapid growth is hiring too quickly. If you’re hiring quickly, you won’t be able to judge whether you’re hiring the right people to put on your team. This leads people to leave your company when they find out that they themselves are unsuitable. It is crucial to put the right people in your company because you invest in their skills as they invest in you. – Paul Stepanov, Virtudesk
8. Cash Flow
If you grow much faster than expected, the cash burn is real. You need to make sure you have enough money to cover that upward trajectory. Have a good understanding of your cash flow and project for it. If you find yourself in need of an IV, get out early before you get into a crisis. – Dr. David Lenihan, Tiber Health
9. Employee involvement in decision-making
It is important to understand the impact rapid growth will have on the business and how that growth will affect current employees. Leaders must remember to communicate the reasoning behind their actions and give employees the opportunity to align themselves with the organization’s vision. Ensure that your employees continue to see the value of the company’s long-term objectives and business goals. – Brian Fugere, symplr
10. Potential communication failures
An overlooked factor in rapid growth is effective communication. Communication breakdowns can hinder growth, so leaders should prioritize this through team meetings by promoting transparency and encouraging open and honest communication. By addressing communication issues, leaders can ensure their teams are prepared for the challenges and opportunities of rapid growth. – Stephen Sokoler, trip
11. Communication overload
As the company grows, there is a greater need for coordination and communication within the company. When reporting lines aren’t clear — which is often the case in smaller companies where everyone wears multiple hats — people tend to overreact by involving too many people in trade shows. The “CC” field can grow faster than light and explode inboxes. – Neil Bearden, Neil Bearden
12. Stabilization
At each growth level, the team must pause and recalibrate before moving onto the next growth stage. The foundation of the business must remain strong, teams must learn from success and mishaps, and planning must be made to continue to fully support the business. – Danielle Levy, Danielle Levy & The Boardroom League
13. Post-purchase customer engagement
Many companies often overlook their post-purchase customer engagement as they prepare for rapid growth. This leads to a decrease in customer satisfaction as most of the customer service representatives are already overworked. Business leaders should consider outsourcing this step in metrics per unit, which can help them scale grievance remediation capacity in line with their capex. – Shubham Yadav, StrategyConnect Inc.
14. Supply Chain Risks
One thing that most companies often overlook during periods of rapid growth is supply chain risks. They assume their suppliers have the infrastructure and capacity to keep up with their growth. While this is not necessarily untrue, it is still important to assess potential supply chain disruptions and take emergency action to mitigate such risks. – Eric Pam, Health channel
15. Mindset
If a company is still in a startup phase and not in a growth or expansion phase, mistakes will be made. Informal procedures must make way for good documentation and numerous motions. Take McDonald’s as an example. Every burger or fries they make is done by the numbers with no variation. – Zain Jaffer, Zain Ventures
16. Leadership Training
Growth is amazing but also challenging – and this is where control freaks and top-heavy systems crumble due to a lack of willingness to properly delegate and share tasks in expansion. Training in the form of different levels of leadership is necessary to help your current leadership understand the importance of using delegation as a management tool rather than creating a toxic environment. – Dana NegerHIVE Talent Acquisition Firm
17. Company culture and team cohesion
A factor often overlooked during rapid growth is maintaining corporate culture and team cohesion. To address this, leaders must prioritize open communication, promote shared values, and invest in team building initiatives. Nurturing a strong corporate culture helps companies maintain long-term success and adapt more effectively to the changes that growth brings. – Andrew Neacsu, HyperSense Software SRL
