How to Manage a Company through Rapid Growth

What we are experiencing right now is an unsure environment, in every sense of the word. While most companies and industries are not doing very well, to say the least, there are some that are experiencing the kind of demand they are struggling to handle. For some others there is a potential for rapid growth in the near future. But how do you manage a company through rapid growth?

“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.” Benjamin Franklin

How to Manage a Company through Rapid Growth?

For those whose companies are going through rapid growth right now, here is how you can manage the extreme effect on your company.

Watch the cash flow

It’s common behavior to focus on the sales during high growth periods rather than the in-coming or collections. It’s important to watch and monitor the collections because that is how you can sustain your own growth without external investment. Guide your team to set up a system and infrastructure to reduce the cycle of collection. Having partners to run the systems for you is far better than having followers who need your input at every level, so allow your team to set up the process while you lead and mentor them.

Prepare for speed

Rapid growth means rapid everything. It will be challenging but you need to prepare yourself and more importantly your team as well as your systems to be able to manage and function faster than normal. This requires every step to be more efficient with little to no loss of time. This certainly does not mean employees need to lose sleep over it, but it does mean they will need to be more productive and more efficient with their work hours.  Especially while working from home during the pandemic. That also applies to machinery and other physical systems.

Avoid nearsightedness

When things are moving faster than you can come to terms with, it’s easier to see just a few days ahead of you. Monthly and yearly plans become a blur and most employees will take it one day at a time. But during rapid growth, being a leader means you need to be able to keep the long-term vision and goals just as clear as the short-term ones. While your team might not be able to see too far into the future you need to maintain that vision and guide them accordingly.

Keep-up the quality

Another common outcome of rapid growth is that quality tends to suffer. This is a problem because it’s more time-consuming to rectify the error or regain the company’s reputation once bad quality has been taken to market. Not only is it more economical but it is also more productive and more efficient, with better results overall, to ensure quality is maintained from the beginning. But at a faster pace, it’s almost inevitable, unless the processes and systems have been adjusted accordingly to manage the increased pressure.

Regular monitoring

If regular times require monitoring from time-to-time, then rapid growth periods definitely need it. It is beneficial to hire a team to monitor hiring, processes, and systems. This will ensure that newer employees are taken through all the processes required and in time don’t feel like their career is not growing like they would like it to. This will reduce the attrition rate many new companies face. It will also make sure that the processes are running smoothly and as intended to be more efficient. And if there are changes and updates required, this regular monitoring team can ensure that is done. They make a great addition when you need to manage a company through rapid growth.

Rapid growth is a bittersweet place to be for the owners and leaders of the company. While growth is every company’s dream and goal, there is also a fear of growing too rapidly and then becoming obsolete. Or growing rapidly and risking the existing growth on further growth. But Keeping these few points in mind can help make rapid growth a little less challenging.

FAQs

Q. How should you make sure new systems are running smoothly?

A. Ensure there is a team to look after the expansion in terms of hiring or processes.

Q. How do you ensure growth is resulting in the envisioned profits?

A. Keep an eye on the cash flows, specifically the collections.