Start-ups with a unique idea often take off faster. With funding, good management and the usefulness of the idea itself, the start-up company may start to face some rapid growth. While such sudden and increased growth rate may paint a rosy picture, the boom may very well become too hard to manage, thus leading to the company crushing itself.
Here are some tips to manage your boom in a rapidly inflating company–
- Goals and objectives
Prepare your long, middle and short-term goals and objectives. Rapid inflation may cause you to skip/ jump across certain small and middle terms goals. Stick to the basics and ask some questions to yourself:
- Am I expanding too quickly?
- Am I recruiting too fast?
- Have I maintained enough cash flow to fund my rapid growth?
The answers to these and other management-oriented questions should give you a rough idea of where you stand. Various online business coaches can now tell youwhat the best options you have for yourself to get started and be established as a brand and a company.
Is your grown stable and more importantly sustainable? Is it a one-time thing that will go away once the phase pass or is there any way to regularise the growth? Will you get repeat orders of the same mass and bulk that you are getting during the growth phase?
The answers to the above question will help to build a need versus requirement table and conclude whether you really need the many people you are hiring, whether you need a bigger factory or bigger machinery. On the basis of this, you can create your plans.
- Cash Flow Management
The careful management and analysis of your company’s cash flow can help you estimate cash at hand at any given point in hand, potential inflow and outflow of cash and evaluate thepotential of facing a shortage in cash availability. This can help you negotiate for a short-term loan and change your receivables/ payables policy.
- Cost Control
Rapid growth of the company can also lead to rapid growth in costs. Cost control is the practice of identifying and reducing expenses. Cost control begins with comparing your budgeted costs with actual results and analysing the differences. You can search for better and more economical ways to cut down on costs. Keep a strict hold over the costs and impress upon managers to stick to the budget as much as possible.
- Team management
Have a really good, absolutely brilliant people in your team. You cannot go solo when your company is expanding fast, you need help and assistance of people just as smart or even smarter than you by your side to help your company succeed. A wonderful team can lead to wonderful results and help manage your company and lead it through the high-growth maze and results in an enriched worker productivity.
A high-growth company shows potential. However, it also comes with its own cash-flow problems. If you wish to finance your company with debt and/ or equity, you must keep your investors’ confidence high in your company and manage the entity carefully without any hiccups. If the investors see potential and stability in your company’s horizons, getting funds will not pose much of a problem. One of the ways to assure investors is to control debt and pay it off regularly.
A mentor is someone with entrepreneurial experience and who is willing to show you the way ahead to managing your company. He/ she will give you learning experiences based on their life and business experiences and you will certainly be steered the right way. Some of the biggest players in the industry like Zuckerberg had mentors. If your company gains a mentor, the sudden growth can become far easier to manage.