It’s every business owner’s dream to start a new company and for it to explode out of the blocks. But let’s be honest – it’s a rare occurrence. The vast majority of new businesses take 18-24 months to get to a stage where they are safe, let alone successful.
That said, when growth does occur, few business owners are genuinely ready for it. And it can cause a lot of problems – overstretching and rapid growth could even see your company collapse. And the only way to avoid these issues occurring is to be ready for it right from the off.
In today’s guide, we’re going to reveal some of the areas you want to look at to prepare your startup for rapid growth. Even if you aren’t confident about your company’s chances of growing soon, make sure you are prepared – you never know what might happen tomorrow.
Focus on capital.
Even if you feel your business is ready for expansion, you won’t be able to achieve your aims without capital. So, in the early days, your focus should be on finding that money and building up your funds to ensure you can finance your growth.
Learn about seasonal changes.
Another thing to be aware of is that your business could experience seasonal variations. Let’s say you are a toy maker – the build up towards Christmas is going to be your busiest period, and there is next to no chance of your success carrying on into January and February. It’s important to be able to recognize these seasonal growth bumps for your business as soon as possible, so you don’t make any unfortunate decisions.
Know your employees.
You will need to know all your employees if you want them to stay productive, be loyal, and do more for your business. It’s easy enough when you have a small startup team, but what happens when you start to pursue rapid growth and are hiring new people every week? As Pingboard point out, as your business grows, it can be tough to keep track of your growing list of employees. It is essential that you have a flexible system in place when you are starting out, that can scale up with you as your business grows. Putting these simple things into place right from the off will help you make changes with ease, and keep accurate records.
Don’t forget; your suppliers will be an enormous part to play in you success, and it’s vital to choose the right people to work with as early as possible. There will be some vendors that can’t manage a sudden escalation of orders, and you might be left high and dry if they fail to deliver. Make sure your suppliers have the ability to scale as soon as you suspect your orders are about to go through the roof.
It is vital to keep your cost of sale down as much as possible. The more you can save, the better shape your bottom line will be in – meaning better profits when you start selling more stuff. Always have concrete cost-cutting plans in place, and avoid binge spending wherever possible. In short – be ready for anything. Good luck!