You own a furniture sales company. Sales go through the roof after you hire a marketing team to handle advertising. You get so many responses that your small team cannot handle the incoming orders. Many customers grow frustrated as you struggle to keep up with demand.
While this is an excellent problem to have, fast growth could quickly cripple a business!
Many companies fail because managers do not have the staff or infrastructure to accommodate growing demand. Managing company growth requires hiring the right people, defining your goals, and controlling debt and spending.
Here are tips on how to manage your company effectively so that when business starts to pick up, you are prepared to handle the quick change of pace.
Hire the best team
Before hiring additional team members, ensure that they understand workplace standards. They must also know the overall culture of the company. We suggest attempting to know a potential new hire instead of conducting an interview behind a desk.
For example, you could take a prospective employee out to lunch to observe how they interact outside of a formal environment with other people. Determine how curious they are about the position and the company. At MGA, we do this through an informal social committee made up of a group of peers within the Firm — some at the same level, some above, and some below.
Look for people who are smart and have more experience than you do. If you need to expand your team, outline an overall hiring budget. This will help you determine how many people you need to hire and how much you can pay them. If you need workers fast, hire them as freelancers.
Moreover, establish a clear vision for the company. From there, hire people who will help you achieve those goals.
Create a vision
As your business grows fast, draft several long-term goals. Ask yourself the following questions:
- Do I have enough funds to hire more people?
- Where is the growth coming from?
- What are my company strengths and weaknesses?
- Is my managerial structure the problem?
Moreover, conduct an audit of your finances. Determine if your current cash flow is enough to sustain operations. Find out if your company is spending more than taking in. After, outline goals that will help you reign in spending.
Consider refinancing if necessary.
If you cannot expand without additional capital, consider a business loan. You can choose such business loans as a merchant cash advance, a business line of credit, or a business term loan.
Your loans can pay for new equipment or accounts payable. Additional working capital will help you take risks. Additionally, the new capital will help you implement new strategies within your company.
What is the best way to handle company growth?
The best way to handle company growth is to find the root cause of the expansion. Then, outline the best solutions when dealing with growth business strategy.
When in doubt, find a mentor who has been through your experience. More importantly, don't be afraid to hire people who might be smarter than you. With that, you must keep track of your spending habits as you grow your business.
We at MGA are not only helping many of our clients overcome this challenge, but we are also working through it ourselves. As we continue to grow as a firm, we are constantly looking for the most efficient ways to scale and manage our growth.