10 Signs Your Business Is Growing Too Fast
It's easy to get swept up in the whirlwind of activity known as rapid growth, especially when it hits you unexpectedly. But if your expansion goes unchecked, it can be as detrimental to your business as no growth at all. Pay attention to signs that you may be expanding too quickly, and take steps to keep things running smoothly.
- Computers, desks and chairs have become hot commodities. Outgrowing your office space is par for the course, but employees who are working on top of filing cabinets may feel unappreciated — or worse — suffer repetitive stress injuries.
- You have more temporary personnel than permanent employees. Relying too heavily on a contract workforce can backfire. Because temporary employees take critical business knowledge with them when they leave, you need to build up and maintain core employees who understand your business and its processes.
- Employee morale is low, turnover increases, productivity drops. These signs tell you that you have some corporate culture issues in your office. Talk to your employees to uncover problems and take steps to resolve issues before they escalate.
- You don't know what your competition is up to or what's happening in your industry. Focus on your business, but keep at least one eye on the larger picture of your industry and its key players at all times.
- You stop sweating the small stuff. Any successful entrepreneur will tell you that you can't ignore things like overnight carrier expenses, supply costs, and all of the other things that deplete your precious capital.
- You accept an order that's significantly larger than anything you've previously handled. You can't afford to turn down orders, but you can't sacrifice quality either. Make sure you have a ramp-up plan in place before you agree to more than you can deliver.
- You continually operate in crisis mode. Dealing with an occasional crisis is one thing, running your business like an ER is another. Each time you encounter a sticky situation, take a good look at what caused it and take action to prevent it from happening again.
- You don't recognize the majority of the people in your office. Make it a point to walk through your office a few times a week to get to know new employees and to stay informed of what's happening in various departments.
- You're running out of capital faster than expected. Rapid growth can devour your capital if you're not careful. Keep a close eye on your bottom line and consider ways to reduce costs: leasing equipment, collecting overdue accounts, or outsourcing employees.
- You've received customer complaints and negative feedback. Complaints can sometimes tell you what expensive research can't. Use them to diagnose shortcomings in your organization and point to possible solutions.
