During the initial stage of their company, most people tend to be primarily concerned with finding a way to avoid failure, which is a fate that meets 9 out of 10 startups. Unfortunately, first-time entrepreneurs rarely realize that dealing with increased workload and startup growth in other areas tends to be as terrifying. Overall, business growth should not be a thing to be taken lightly, especially seeing how mismanaging your company in this period tends to create a whole array of problems for you later on.
With this in mind and without further ado, here are few tips on how to deal with business growth.
1. Your Expenses Will Grow
A larger business usually requires you to move to a larger office (which increases your utilities), hire more people (which means a larger payroll) and purchase new equipment (which consumes more of your profit). Overall, the bigger your business grows, the larger its expenses are going to be, which is completely fine seeing how your profits will increase, as well.
Unfortunately, for a small business, it usually takes some time until it is self-sustainable, which means that you will probably have to look for a temporary solution to your cash-flow. Luckily, there are several ways to boost it, like encouraging the use of payment cards, getting a line of credit and even considering some longer term financing. The choice is yours.
In the previous section, we briefly mentioned that once your business starts growing you will need a larger office as well. This, however, may cause a couple of problems. First of all, moving means that your company will experience some downtime, which can have quite the negative effect on a business in its infancy.
Second, you might have to improvise a bit and move into a semi-prepared office space (due to the fact that it is much cheaper). This means that for the first few weeks you might be able to move only a part of your equipment. One of the ways to deal with this is to find a local storage unit and depose them there until you have enough room for them. So, in a scenario where you might need storage, you should look for storage solutions Melbourne has to offer.
You never know when an increased workflow could be just a fluke, which is why being reluctant to hire more people or open an in-house department might be a good idea. This is why it might be a good idea to outsource some of the non-vital business functions for the time being. Keep in mind that by outsourcing you are not only avoiding hiring, but also training and equipping new personnel. When combined, this turns out to be a quite frugal short-term strategy.
Finally, once things start going great you may leap at the opportunity to expand your business, but this is not always the best course of action. As you could see from the previous section, you will need all the cash you can get your hands on (for the increased expenses). Furthermore, success is not always to be trusted. Because of this, you should be extra careful not to over invest, before you are completely sure that this growth is here to stay.
Even though business growth is something most entrepreneurs dream of, once it’s finally there, chances are they won’t know how to handle it. Sometimes too much growth too soon can end out being quite dangerous. In the worth of the American author Edward Abbey: “Growth for the sake of growth is the ideology of the cancer cell”. Still, by controlling the expansion of your business, you will have its future firmly in your hands.