As most of you know, getting a small business up and running is a major challenge to many. Businesses such as https://dreambuildersofva.com/ have endured a lot to grow to the level they are today. Many small businesses struggle to survive their first two years. A business that is growing too fast can also be disastrous as a lot of things may go wrong. Stats from the US small business Administration show that 30 percent of small businesses have to shut their doors within the first two years after establishing. When you are growing at a pace you can’t keep up with, many things may go wrong.
There are many signs you can watch and things to look for as telltale signs that your business is growing too fast. Here is what to look for;
Cash flow crunch
One of the first signs you need to look for as a sign of unsustainable growth is clogged cash flow. While there might be a high demand for products and services, cash flow may be lagging. A cash flow crunch will create a host of other problems and issues that concern business. Cash flow is one of the major problems businesses face today. You might be having multiple outstanding invoices, and when unpaid invoices stack up, it’s bad for business. You might have missed payments with vendors and suppliers and have an overall messy financial system.
Compromised customer service
The second sign that your business is outpacing your ability to keep up with demand is when you start experiencing compromised customer service. There will be a high demand and you will have problems keeping up with the demands of customers that guarantee high customer service. When you have a very thin spread of customer service staff, you will be creating a recipe for chaos. More than half of customers will ditch working with a company after bad customer experience. You can deal with high demands for customer service by outsourcing some of your tasks.
Hiring the wrong employees.
When your business is growing, it is common sense that your team should expand. Hiring new talent can help you solve some of the big problems you might be facing. When your business is growing too fast, you might be tempted to hire anyone who comes to your side. Hiring without a plan will lead to hiring the wrong candidates. Wrong employees hiring will lead to poor service delivery, a lot of resources will be lost and ultimately, it will lead to high turnovers.
Everything is urgent and important.
In a fast-growing business, your time and resources will be very much limited. Very important tasks may lag or lack of time for their delivery. No matter how much overtime you and your team put, you will not be able to clear workload. Even those tasks that don’t need to get done immediately will be pushed back to the drawing board. All your tasks then become urgent and important and this is where you start to go wrong. If you cannot get ahead of your projects, it will cause your team to miss deadlines and will eat into your profits.