As a business owner, one of your main goals is likely to grow your business. While growth is certainly a positive thing, it’s not always easy to handle unexpected increases in business. Here are some tips for balancing quick growth with your regular behind-the-scenes business management.
1.) Determine Where the Growth is Coming From
When it comes to fast and unexpected periods of growth, you should consider what’s driving it. Have you recently boosted your marketing efforts? Has your business been featured in the media? Are you running a special promotion? Sometimes you can easily pinpoint a specific reason for a boost in business, but other times it can be driven by something more subtle, like increased word of mouth, or great online reviews.
It's also important to get a sense of where the growth is concentrated. Are you noticing greater demand for specific products or services, or are you seeing growth across all of your business offerings? By taking the time to analyze which aspects of your business are driving growth and increasing sales, you can make necessary adjustments to your inventory or staffing to keep up with demand.
2.) Keep Finances and Reporting in Order
When experiencing an increase in business volume, it’s important to keep your existing finances in check:
- Review your cash flow. Even if profits are up, your cash flow may be tight. Be sure you’re paying close attention to the big picture financials to ensure your money is being allocated to the right products and services.
- Revisit your budget and anticipate future expenses. Ensure that your budget has some wiggle room as far as your expenses are concerned. This will allow you to invest in the equipment or additional employees you may need to support greater demand. You might consider pulling funds from other areas, like product development or marketing, to meet more immediate needs. You might also consider taking out a business loan to support your business growth.
- Ensure your documentation is kept up to date. You need to keep track of your sales and accounting. Don’t let being busy get in the way of ensuring that your business is able to meet all financial goals and expectations.
- Keep up on inventory. As demand for your products or services increases, you don’t want to wind up sold out and having to turn customers away.
3.) Ensure a Smooth Customer Experience
One thing that is often overlooked during periods of fast growth, is the customer experience. Even if increased demand is making things more stressful on your end, you want to ensure that your clients and customers are getting the quality service they deserve. You’ve likely worked very hard to build a great reputation for your business, and you don’t want to undo all of that work by letting the customer experience take a back seat. Do what you can to prioritize your customers and ensure they have a positive experience. Keep a close eye on your online reviews and solicit customer feedback if possible. Listen to the experiences your customers are having and make adjustments to your operations as necessary. In some cases, you may have to hire additional employees. If you don’t have enough staff to handle the requests of your customers, you are likely to disappoint them.
If your company is experiencing an influx of new business, you should first give yourself a pat on the back. You’re doing something right and just need to ensure that you have the tools and organization to capitalize on this growth. By analyzing what’s driving your growth, getting your financials in order, and prioritizing the customer experience, you’ll be well on your way to sustaining your boost in business. At BankFive, we’re here to support your efforts. Whether you need payment solutions or customer loyalty programs to streamline your business, or want to explore financing options or cash management solutions, our dedicated team of MA and RI business bankers can help. Don’t hesitate to contact us today.