To keep up with demand + monetize success the natural instinct is to grow. Growth Strategy is critical. A bad growth strategy can kill an otherwise solid business very quickly because as customer reviews go down, demand goes down, morale plummets, quality drops, and costs skyrocket. To save such a business you must recognize the growth problem indicators early:
1. Growing too fast? Hiring anyone with a resume, taking on huge costs, forgetting customers, putting too much pressure on key employees, rushing contracts, partnering with toxic suppliers? Slow down.
2. In the wrong places? Growing just to grow even if the area is bad, the market saturated, and no/limited demand? Do a preliminary market survey.
3. Lost operational control to banks? Trading your companies soul for money is a bad idea. Letting others tell you to change your secret sauce + how to price it is going to kill your business. When deadlines for repayment start coming up and you weren’t as successful as you thought when you were riding the enthusiasm train what will you do? Be smart with financing your growth. Losing your company because you were overly enthusiastic or desperate to grow is stupid.
4. Lost touch with what made you successful? Remember beer cart Fridays? When workers and customers were happy? Quality was solid. Costs were controlled? Ask why you decided to grow, where the current path will take you, and how can you do it better. What did you do differently than competitors or what was your angle that made you successful? Get back to that.
5. Lost customers? Focused only on adding customers? Well…there go the loyal ones that you have ignored. Responsiveness is key. Keeping a good customer is cheaper and easier than bringing on a new one.
Quick Fix: Call timeout. Let people know you are relooking at the model. Apologize to employees + customers. Get back to what you do right. Always keep true to your original values.
There are a lot of companies that become legacies and establishments for generations because they stay true to quality and they care about their reputation and their customers. The product or service, the employee, and the customer should always come first and then the money will follow. Companies that grow for more money tend to fail. If you want the company to survive growth then the growth must be for the right reasons, in the right places, at the right time, and with the right strategy.
Contact me to discuss your growth strategy or how to get your company back on track.
StraightUp Strategy LLC