Do you have growth ambitions? Here's our guide to the top five gremlins you should avoid.
Most businesses we work with want to grow, and our clients have included pre-revenue start-ups right through to £10m+ companies, easing them through tough growth periods and supporting their finance function. We've also gone through a recent period of growth ourselves, so here's our guide to the gremlins that you should watch out for.
1. Keep Recruitment in Check
You may have spent several years cultivating a workforce (however small) of people who you rely on and trust. When the need to bring in more staff at a greater rate than before comes along, don't let go of that mentality! You need to make sure you've got your bases covered and all departments are fully resourced, however recruiting and training new employees is a time-consuming and often expensive process. If you let the quality of your recruitment slip due to time constraints, you're likely to find yourself in a worse situation in two months time when you realise your new hire is not able to perform the job function as you had hoped.
2. CAREFUL cash
Continue budgeting and forecasting (or start right away!) and don't let spending get out of control. Periods of growth can consume profits very quickly without leaving enough for further growth/times of difficulty. It's sensible to continue to keep cash in reserve and to question expenditures, just as you would if revenue was slow.
3. Vision MINDFULNESS
Growth often stimulates diversity, with new recruits and new departments comes new opportunities and prospects. However do not loose sight of your original vision, keep in mind the product or service that your business idea is based around. The core business function is what allows that growth and facilitates all that diversity.
4. Bad credit
Your ability to borrow money could make or break you during a growth period, so it's vital to keep your personal and business credit separate.
5. Personal stress
Your company is dependent on your mental well-being (unless you're lucky enough to be able to hire someone to do your job for you), and it can be tempting to take work home and spend every waking hour devoting yourself to this project or that. But you need your downtime and family and friends need you to, a business will consume you if you let it! Read our previous posts on How to Make the Most Out of Daylight Summer Hours, A Business Leader's Guide to Minimalism and Squeezing The Last Second Out - Winter Solstice 2016.