Too many new customers can put you out of business, unless you have the systems and processes to handle rapid growth. Unprepared businesses experiencing exponential growth end up providing poor service and develop a negative reputation.
So what do you do if your business is growing too quickly and it is difficult to keep pace?
1. Understand that you have a potential problem and find solutions now, before it is too late.
2. Consider what is driving the growth. It could be your prices are too low. If so, an increase in prices could slow the growth to a manageable level and improve your margins at the same time.
3. Analyze the different areas of your business to determine which areas you are the best and most passionate about. Prepare to hire other people to do the rest.
4. When you hire people, take extra care to hire the right people for the job. Hiring the wrong people will lead to extra turnover, additional training and extra expenses.
5. Contact 12 people in your industry who operate in a different city. Propose the formation of an industry-specific mastermind group with a monthly conference call to share best business practices, discuss issues and challenges, and develop solutions for all.
6. Analyze the different tasks you do on a daily basis. Are there new technologies to help you manage the workload more efficiently? Consider technologies in areas like your contact management system, billing and collecting, internet technology, marketing, payroll and so forth.
7. Work with a business coach who has proven expertise in developing systems and processes for rapidly expanding companies.
Bill Nordbrock is vice president of community relations for SCORE Southern Arizona, a nonprofit group that offers free small-business counseling and mentoring by appointment at several locations. For information, see www.southernarizona.score.org, send an email to mentoring@scoresouthernaz.org or call 505-3636.
