Are you the founder of a startup company that is growing and becoming more successful every day? That’s fantastic! A lot of startups don’t even make this far because of the many challenges startup business owners during a growth stage. Growing is every startup owner’s goal, but without the knowledge to handle the growth, your business could risk failure. More growth means more delegating, decision making, scaling, learning and taking risks. And with that growth comes growing pains. Here are five growing pains all startups face at some point or another:
As a growing business, you are going to work on scaling your company. Scaling is a company's ability to increase its sales, while maintaining or increasing efficiency at the same time. In other words, if your business gains three more clients but requires you to hire more people to meet the customer’s needs, then you are not running the business efficiently. Scaling is a growing pain that is critical for your success. You just need to push through the challenges and create solutions that will get you through the scaling phase. Growth is a good thing of course; you just need to know how to handle the workload of that growth. That said, scaling too soon when you are a startup can also be a bad thing. Scaling too fast and too soon can result in failure so it’s important you scale your business when the time is right. See: Business Line of Credit vs. Loan — Which Is Right for Your Business?
Entrepreneurs know that building your own startup takes a lot of time and knowledge but you might not realize how hard it really is until you’re in the thick of it. Just remember, you still have a lot of learning to do. Being a business owner for the first time comes with a lot of power and responsibility. Chances are, you do not know everything, and mistakes will be made. Being a startup business owner is all just one big learning process. You may think you know what is best for your company and how to run it but take the time to listen to what your employees have to say. They may have an idea that you haven’t thought of or they may have learned some tricks and tips while working for another company that could help you solve problems and make decisions for your business. Also, take time to learn about new tech keep up with your industry’s trends. Learning never ends — even for accomplished executives and CEOs.
If your sales are flat, it may be time for some fresh ideas. Being innovative and consistently testing and developing new products and services is important for growth. Innovation comes with a bit of risk taking and a lot of leaving your comfort zone. Taking risks will set your company up for greater success in the long wrong. Leaving your comfort zone and opening your business to new ideas will keep your company relevant and allow for you to gain a larger customer base. For example, maybe you started selling just one or two product types, then maybe you could look into a product that may reach a different customer base while improving your existing products. A good thing may not last forever, that's why being innovative and keeping up with trends can be important for your growing startup — even if it means leaving your comfort zone from time to time.
Building your dream team is a key part of running a successful business. You don’t want just anyone making decisions for your business, right? It’s tempting to start by hiring your friends and family, but when your startup starts to grow, you are going to need fresh and experienced talent. Also, hiring friends and family can lead to strained relationships if things go south. Hiring the staff takes a lot of time and money. You are going to have to write job descriptions , review resumes, set up interviews and take the time to pick out the candidates with the most potential. Having the best talent will help your company run more efficiently, so that it can keep up with its growing customer base .
Startups that have quickly climbed up the success ladder, may not be prepared financially to handle its newfound growth. This can lead to running low on inventory or not having enough office space, employees or equipment. Small business loans can help you purchase the necessary inventory or help you move to a larger office space so that you can effectively manage your growth. Growing and expanding your business is the goal, so it’s critical to be prepared when you finally reach that growth stage. Up Next: Financial Steps Every New Business Should Take
The growth of your business is a good thing but it can still come with a few growing pains. If you can anticipate those weak points and prepare for them, you’ll have a better chance of overcoming them and finding success either through planning or a startup business loan . Learn as much as you can, take risks when you see there is a high reward, hire a dream team and be prepared for any extra expenses that comes with growth. More From Seek
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