Starting a new company can be an exciting way to enter the business world, test out your ideas and hopefully make money for yourself. However, to have success, your company will have to show signs of growth. For sustained success, it will be critical to manage your growth to ensure that the needs of your customers and your people are met while the company is being scaled. Why is growth management so important?
You Don’t Want to Lose Yourself
There is a reason why your company was successful in the first place. It may have been your commitment to customer service, your catchy slogan or the fact that you were the only company in the area providing a good or service that was highly in demand. If you grow too quickly, you could lose what made the company so special in the eyes of the customer.
Some startup owners are in such a rush to make a profit or prove how successful they are that they grow into markets that are too large for them or where their target customers may not be. This could mean disaster both in the new markets and in markets where you currently do well.
You Don’t Want to Overextend Yourself
When you first start a company, you may be able to handle the sales calls, meet with clients and actually provide a service or make a good yourself. Over time, this becomes too much for one person to do with the same quality and attention to detail. Therefore, you either have to stop growing or hire people to help you.
At first, you will want to hire those who believe in your brand, believe in your core values and can replicate or at least imitate the same quality and service that you bring to your customers. By growing at an appropriate rate, you can develop partnerships with suppliers, find great employees and associate only with those who will help your brand thrive.
You Don’t Want to Spend Money Without a Return
Growth costs money. If you started your company online or out of your garage, you may need to eventually move to a dedicated office space or buy a factory to manufacture and store your products. Depending on where you decide to locate your headquarters, you may need to move away from your hometown or to an area where costs are higher than they are where you live.
For instance, you may decide that moving New York from New Jersey or another state is more beneficial for your company, but it could cost more to work in New York City than it does in a suburb. Therefore, you have to be sure that moving your headquarters is going to result in a return on your investment. Otherwise, your company could fail even if your plan is solid.
It’s Not Just Your Money on the Line
While you may have the most invested in your company, there is a good chance that others have invested their time or money as well. Therefore, you have to make sure that you are offering a good return on their investment as well. As you grow and expand, you want to make sure that you are taking steps to retain those new customers and sources of revenue.
If you take growth for granted or aren’t looking for new ways to make money, investors may think that you have gotten lazy or don’t care. Depending on how the company is structured, you may find yourself getting fired from your own business. Therefore, make sure that strategic growth is a priority no matter how successful your startup has been.
Startup companies are hubs of innovation and can help spur economic growth. If you own a startup, your goal is to grow and become one of the most successful companies in its field. However, this is not necessarily a linear progression. If you don’t manage your growth and grow strategically, the business may flop or fail to reach its potential.
