As business owners, growth is our primary goal. However, achieving growth opens the door to new challenges. If a company is not ready to face these challenges, you can lose what ground you’ve gained. Fortunately, our tips for handling growth challenges for a business will help you navigate the road ahead.
Unsustainable Growth
Businesses with explosive growth often fail because they can’t sustain their growth. They take on too much too quickly or underestimate the cost of producing more. You have to examine your income and expenses at every step of expansion and make realistic goals and predictions. If you are a new business owner, hiring a consultant may also help you make sustainable choices.
Loss of Brand Identity
As your audience expands, it’s natural to want to update your brand to meet the growing need. However, keep in mind that your brand is what attracted the customers you needed to fund the expansion in the first place. That isn’t to say you should never change your branding. Just be wary of alienating your original audience.
When rebranding, focus on inclusivity instead of exclusivity. In other words, find ways to add to your existing audience instead of changing it.
Staffing Needs
There are two components of staffing challenges: your company’s need for staff and your staff’s needs from your company. Since employees are the engine that keeps a company going, you’ll need to address both issues as your company grows.
Need for Staff
Overburdening a single employee with too much work will lead to burnout and a constant rotation of new employees. This uncertainty will put more strain on your company’s budget and productivity than hiring and keeping more employees. Discuss reasonable workloads with your staff, and factor that feedback into your hiring decisions and budget.
Needs of Staff
In 1907, New York businessman Harry N. Allen started a taxi company that would set the model for New York Taxis for the next century. However, despite his company’s vast appeal and success, ultimately, the business went under in a year. The reason? Disputes over unfair charges to laborers. Again, employees are your company’s engine. Create a culture where your employees can be honest about their needs, then strive to meet those needs.
Inventory Management
As your inventory grows, you may need to invest in a larger space to store it. Warehouses are a worthwhile investment for handling your business’s growth challenges. But keep these principles in mind if you go this route:
- Organization: Dead inventory costs businesses billions annually. Organize your warehouse to ensure workers can see and access items effectively.
- Operating costs: Capable workers and equipment are essential for keeping inventory safe. Do your research before hiring managers or buying heavy machinery like forklifts.
- Safety: Few things cost a business more than accidents, and warehouses are more prone than office spaces. Establish a foundation of safety best practices.
As a business, it’s natural to want to grow. The idea is to grow in a way that will help your business maintain its success. Just make sure you’re doing so responsibly by following these tips for handling growth challenges for a business.
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