It might seem strange but if a business grows too fast then dire consequences can occur particularly for small businesses and start-ups.
Fortunately if you know and understand the signs you should be able to better manage your rapid growth.
Keep an eye on the cash flow
As your company grows, so will your business costs. A small start-up should be self-sustainable and if your company proceeds to the next level too hastily, the added expenses you incur could mean the end of your business.
Furthermore imagine you have a particularly good month and you’ve got a good bit of cash in your pocket. That’s great but don’t let recent successes go to your head. The extra money can be used to expand your business BUT this should only be done after careful consideration and you must keep your long term goals in mind. Many small businesses fail because they overspend and expand their business so suddenly they find themselves juggling more clients and costs than they can handle. So spend wisely.
Alternatively you can always play it safe and put the cash on reserve.
Being the most popular kid in school isn’t all sunshine and sweets. True you have all the attention and the buzz but too many fans will limit your capacity to offer the personal undivided attention they love you for. As a result you may find yourself spread too thin and taking shortcuts to make ends meet. Most followers will notice and complain which can lead to very negative reactions on social media. For small companies, a bad rep on social media could herald the end.
Employees are stressed
As your business grows so will the workload. Rapid growth can cause a definite dent to morale as your employees are abruptly forced to work harder, faster and longer which will likely result in stress. In addition you will unlikely be capable of affording to compensate them more than you already are. Keep your crew happy and let your business grow at a comfortable pace otherwise they may jump ship.
Social Media Explosion
Gaining more fans on social media means more people listening to you. Think of yourself as a performer on stage doing a show and each night you play the audience grows a little bigger. You perform the same show every day for a month, people love it and you’re feeling great. Yet when the next month rolls around you find your first bad review. You ignore it and the next day you find two, then three and so on until you find your fan base slipping away like liquid through your fingers.
Social media is essentially a stage on which you perform to sell your products and services. So having a perfect strategy to tackle social media is very important. Earning a strong fan base from the get-go is great but keeping them consistently engaged is what drives conversion. Giving your customers what they want is essential but if you are unable to show innovation on a regular basis you will lose prospects.
Are you ready to elevate your business to another level?
Feel free to talk to one of our digital strategists today. We are more than happy to help! Contact us now.