Every entrepreneur dreams of successful growth…
However, when it starts to happen, it's not always as blissful as you might think. As your business expands, you'll have to adapt to accommodate this growth. Different needs and a heavier workload can make it seem like your business needs a completely new blueprint— but it doesn't have to be so overwhelming. While this may sound a little scary, with some proactive planning, you can effectively be ready for internal growth as it happens.
Different types of business growth
There are essentially four types of business growth and each one contributes to business success in its own way.
- Organic business growth: Entrepreneurs invest in higher production or service levels, expand facilities, or set extended hours to accommodate growth and the business sees tangible benefits.
- Strategic business growth: Focuses on the long-term and looks beyond organic growth. This might mean shifting into new markets or investing in strategic unconventional ways to expand the existing business. It carries some risk, but if successful can pay off handsomely.
- Partnership/merger/acquisitions: Companies often look to connect with other businesses to bolster strengths and reduce weaknesses, usually to fill a niche that is lacking.
- Internal business growth: A unique form of growth because it focuses on the inner workings of the company, seeking ways to be more efficient and profitable.
By determining the type of growth you'd expect, you can adequately protect yourself from the drawbacks associated with accelerated growth because you'll have built the solid foundation necessary to keep up with the pace.
What makes internal growth different
Internal growth differs from other types of growth because it enables your business to increase its profitability without relying on external forms of funding or spending excessive amounts of time pitching to investors. Without commitments to external stakeholders, your business can put its focus on building internal strengths, stabilizing its future over the long-term. While internal growth has many advantages and is a terrific way to grow, it does carry some challenges because the solutions may not be as obvious as they might be for external forms of growth.
Common challenges faced while growing your business
As your business grows, you'll be confronted with different challenges along the way. Common challenges entrepreneurs face include:
- Keeping up with changing staffing needs.
- Handling cash flow management.
- Managing human resource needs.
- Tax and accounting controls.
- Management information systems.
To succeed, you'll need to develop strategies to manage growth. Getting help for your business’ internal growth might be your best option.
How to properly manage business growth
As growth occurs, your human resource needs will change and you might not be prepared or have the right know-how to deal with new roles to fill. You could stretch yourself too financially thin by hiring additional full-time staff which is costly due to high recruiting, onboarding, and training costs.
Building good partnerships is both a valuable and viable strategy to mitigate these challenges. For instance, a customer service outsourcing company can help you to fill any necessary staffing gaps and contribute to knowledge areas your company may currently be lacking.
If you have these or any other standard or specialized roles you need to be filled, there are numerous other ways your outsourced talent can deliver. As an additional benefit, you and your in-house staff will have more time to dedicate to core competencies.
How outsourcing affects company culture
You might worry about your in-house staff feeling slighted or threatened that they might lose their jobs. However, these concerns can be mitigated if you:
- Maintain strong communication to let them know their jobs aren't in jeopardy.
- Encourage camaraderie and a sense of belonging.
- Shift your staff's responsibilities to ones that have a direct impact on your company's future, offering them opportunities for professional growth and an increased feeling of ownership.
Keep your team's morale strong and outsourcing will have little effect on your company's culture. If anything, it'll strengthen it.
Growth is a great sign of entrepreneurial success, however, growing too rapidly can lead a company to crash and burn. Signs you are experiencing unmanageable growth and need assistance include: Your team being overworked, inability to keep pace with staffing, unhappy customers, and growth breaking your business' foundation. If you're struggling to deliver value and quality products/services, you need assistance. Getting help is not a sign of weakness, it's making a responsible investment in your business' future.
Growth shouldn't lead to failure, but unfortunately, it often does. According to Harvard Business Review, 85 percent of executives say the barriers that prevent businesses from meeting successful growth lie internally within their “four walls.” By making strategic moves to ensure your company has adequately covered its staffing bases before seeing explosive growth, you can avoid a chaotic situation and proactively prevent failure from happening.