Pro Installer June 2019 - Issue 75 | Page 46

46 | JUNE 2019 Business Read online at www.proinstaller.co.uk 5 EXPERT TIPS FOR MANAGING RAPID BUSINESS GROWTH In modern business circles, advice groups and seminars, having a ‘growth mindset’ is lauded as a vital part of doing business well. But is it really that simple? Is your business is growing too quickly to keep up with? Here are five expert tips from Nick Pollitt, Managing Director of office design specialists Diamond Interi- ors, to ensure you stay in control without having to sacrifice that positive growth mindset. 1. Outline your game plan Lightning-fast growth is rarely accounted for in an entrepreneur’s initial game plan (unless you’re particularly optimistic). Your long- term strategy probably looks a little redundant now because rapid growth has changed the goal. On the contrary, short-term goals feel all but pointless. Focus then on your medium-term goals such as a 12-month business strategy instead of the 5-year projection you put together originally. 2. Crunch the numbers Poor cash flow management is toxic to a rapidly growing busi- ness. As your operational costs increase, you need to ensure you have enough money in the bank to keep things moving. Here are a few quick tips for getting enough cash into your business account to make your growth financially sustainable. • Automate invoice follow- ups. Some accounting software will allow you to schedule automatic follow-ups so you spend less time chasing in- voices. That way, you get more payments in without having to find any more time to do so. ‘ Upskilling staff is a great way to increase retention and staff satisfaction ’ • Migrate clients to Direct Debit. Moving any regular payments into your business over to Direct Debit is easier for both parties. Some clients may object, but even migrating a small share of your client base can give you enough financial breathing room. • Liquidate spare assets. If you’ve got any assets that you could turn into cash without hurting your future prospects, now might be the time to do it. If you have a plentiful supply, map out how much you’d need to liquidate each month to make up any cash deficit. 3. Get the right people Many employers know the dangers of making bad hires or — worse — keeping bad hires, but when under pressure that comes from fast growth, those decisions don’t seem so clear cut. • Promote from within. Upskilling staff is a great way to increase retention and staff satisfaction because you’re rewarding them for their hard work. Plus, existing staff are likely to have played a key part in your growth in the first place, so giving them more responsibility will help your business. • Alleviate pressure with short-term outsourcing. Recruitment can take a long time, especially if you’re work- ing in a niche industry. You can buy yourself some time to make the best decision and prevent staff burnout by outsourcing some work to sub-contractors in the short- term. Be selective about the work you send out, though: hiring a bad sub can damage your reputation if the prop- er quality control measures aren’t in place. • Focus on quality over quantity. If you’ve outsourced work, you’ll have breathing room to wait to recruit the best people rather than going for the best of a bad bunch. It’s better to wait four months to make the right hire for that crucial position than hire in the first week and have them leave four months later with your company in worse shape than it was before they arrived. 4. Stay focused on the core product A lot of businesses that grow too fast do so because they’re so busy expanding into new areas that they don’t take the time to refine their core offering. If you’re not already set up on a reviews site like Trustpilot or Yelp, do so, and share the link with your existing customer base. Ask for honest feedback in the form of anonymous surveys. Honest customers are incredibly valuable because they’ll identify the flaws or restrictions of your product that you didn’t know were there. Build your refinement strategy around feedback, and prioritise it over those exciting expansions into new markets you’ve got in mind. 5. Upgrade your HQ If you’re hiring lots of new staff to help sustain your business growth, chances are that you’ll quickly run out of space in your current location (if you have a HQ). 1. Move to a bigger office (or set up a space if you don’t have one). Consider hiring a third party to locate the ideal space for you, one that suits your needs and your budget alike. They may also be able to plan out a transition process for your company to minimise any dis- ruptions to your business that a move might have. 2. Change the way you use your space. For some businesses, the problem may not be a lack of space but a failure to fully utilise the space available. diamondinteriors.co.uk