Laura Scotti is the CEO of ScottiWorks on behalf of Pathways Consulting Group.
In life and in business, growing pains hurt, but they can also be a sign of great things to come. As opportunities for advancement become apparent, you must be willing to change and adapt in response to the challenges that come with growth. Just as we adjust to these challenges to live a successful life, we must also have this willingness to adapt when building a successful business.
While growth is typically a fundamental goal for every company, accelerated growth over a short period can be just as detrimental to the health of a business as no growth at all. It can bring unmitigated risk, burned-out employees and other problems that could result in disaster. Many common pains like outgrowing the workspace, increased job responsibilities or outdated technologies can take you by surprise as your business expands. If a company continues to scale without the adequate tools, structure and resources to handle it, it cannot sustain itself in the future. To avoid this situation, you must be aware of the dangers of rapid growth and be prepared to address them. Keep reading to learn about some common pitfalls you may encounter and how to avoid them to ensure healthy and sustainable growth for your company.
Constantly Putting Out Fires
Your business has successfully launched, and you are gaining new clients who refer others to your company. While it may be tempting to celebrate, you often find yourself playing the role of a crisis manager who’s constantly extinguishing fires. During these times, it’s crucial to understand the need for better solutions. Addressing urgent situations may seem like the only viable option; however, every moment spent dealing with them takes valuable time away from your long-term objectives.
Solution: Establish long-term goals and create small-medium-large projections for your enterprise so you are prepared for any growth spurts. View this as an opportunity to recruit experienced personnel, such as a chief operations officer or senior executives, who can handle crises on your behalf. This approach can help you create a team of employees who feel more invested in the company’s vision. Moreover, learn to discern when certain matters can be postponed, particularly if they do not align with your objectives.
Not Enough Time To Meet Quality Standards And Business Demands
During rapid business growth, it might feel as though there is never enough time to complete day-to-day tasks at the quality you desire. Stress levels can escalate quickly, leading to diminishing morale, particularly among employees who view their positions as mere jobs and don’t necessarily share the company’s mission. In this critical phase, it is not uncommon for CEOs to become overly controlling. However, to progress and delegate tasks effectively, you must have a dedicated team that shares your vision and can develop alongside you.
Solution: Take a step back and reevaluate your short-term and long-term objectives. Ensure that your organizational structure is correctly aligned, and have discussions with your team members. Evaluate whether they contribute to the overarching goals or invest their time in repetitive duties. Determine if your higher-level personnel are making progress or if they are being held back by mundane tasks. If additional full-time staff are not an immediate option, consider hiring a consulting firm that can provide short- or long-term expertise.
Hiring The Wrong People And Knowing When To Trim The Fat
Establishing a harmonious balance within a high-performing team is essential to a thriving business. As a company expands, maintaining this balance while recruiting employees who fulfill all requirements and meet immediate needs becomes increasingly challenging. The need for individuals with specific skill sets is imminent, but you might not know where to find them.
At the same time, many owners mistakenly believe that scaling only entails expansion. However, as the company grows, some aspects of your workflows may become irrelevant or impractical. Certain departments may become obsolete, and staff members might prove to be incompatible.
Solution: Identifying and eliminating underperforming components is vital as you shift your focus toward more productive areas. When scaling a business, it is important not to shy away from trimming the excess “fat” to facilitate efficient growth. Many business owners seek assistance through a highly specialized staff augmentation service. If you explore this option, look for a team that includes industry experts and that actively participates and helps drive an organization’s vision to relieve pressure.
Rapid growth often pushes businesses beyond their comfort zones, leading to personnel, productivity, product and personality-related concerns. Rather than denying problems or disregarding the possibility of improvement, owners and C-level executives should address these issues directly to prevent long-term damage to the organization. Avoiding these common pitfalls can contribute positively to the company’s overall expansion, increased profits, longevity and continued success.
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