Tips for Healthy Growth
Uncontrolled growth can lead to overworked employees, disgruntled customers and financial strain. These tips will help ensure that your business doesn’t grow too big too fast.
Only take orders or contracts you know you can fulfill.
Your business’s reputation is one of its most valuable assets. Poor performance can derail your growth plans quickly. It may be difficult to say no to an order, but it’s better to do that than to “over-promise and under-deliver.”
Carry out credit checks on new clients.
Getting paid on time is especially important when you’re in a growth phase. If you have new clients placing large orders for payment later, make the effort to check their track record. If you have misgivings, consider asking for a deposit or up-front partial payment.
Arrange credit before you need it.
Advance planning can give you maximum financial flexibility when you need it. That’s why it’s always good to arrange for access before you need it. Investigate the best options for short-term and long-term financing.
Control costs.
Keep a handle on costs at all times. Should cash flow tighten, you’ll have a report of current expenditures to see where you might be able to make changes.
Focus on core competencies.
Your profitability and growth are linked to doing what you do best. Other activities can distract you from this key focus, so consider outsourcing tasks that fall outside your core area of expertise.
Add resources (both human and capital) in stages as you need them.
Avoid a financial over-commitment and poorly timed hires and purchases by taking on additional personnel and equipment only as needed.
Be realistic.
You are excited about growth but it’s important to set targets that can be achieved within the timelines you set. Slow your growth plan when necessary.
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