Most entrepreneurs envision their business growing in some capacity. For many founders, the journey entails hitting a rapid growth phase, typically defined as increasing 15-25% annually. From 2010-2020, the average company grew by just 2.8%, with only one in eight reaching a growth rate of 10%, according to McKinsey research. Thus, founders leading companies in a rapid growth phase should feel a sense of accomplishment. However, this phase can also be extremely challenging. Growing 15-25% means expanding your business in new ways, which can stretch your skillset, budget, and patience.
Surviving rapid growth requires a strategic approach and a resilient mindset. “Growth is an exciting challenge, not a destination. Don’t lose sight of building and scaling your business for long-term success,” says Jay Maska, CEO of Nonstop Financial.
As your business grows, your company culture will inevitably shift. However, it is essential to keep the core elements of your culture intact to retain existing employees and ensure consistent customer experiences. “The first step to scaling culture is to define each company value or belief into two or three observable behaviors,” advises Jordana Valencia. This strategy helps maintain consistency in the things that matter most amid extreme growth and change.
Implementing Scalable Processes
Scalability is crucial in managing rapid growth. “Your business processes got you this far, but they might not be enough to get you to the next stage of growth. Review and refine them regularly to make sure you’re equipped to handle an increased volume of sales without slowing down or losing out on quality,” says Maska. Scalable processes help maintain consistency, improve productivity, and allow your team to focus on strategic initiatives.
Effective communication can become more challenging as your business grows. Establish clear communication channels to keep everyone aligned with the company’s goals and strategies. Regular updates, team meetings, and transparent communication from leadership are vital. Additionally, keeping communication lines open with customers, suppliers, and other stakeholders builds trust and collaboration.
Maintaining Financial Discipline
Rapid growth often comes with increased financial pressures. It’s easy to fall into the trap of overspending in anticipation of future revenues, which can lead to devastating outcomes if those revenues do not materialize. It is important to keep track of the bottom line. “Companies that generate stronger returns attract and deploy more capital, a virtuous cycle that enables them to grow faster and generate still higher returns,” notes McKinsey and Company. Working with a financial expert can ensure you aren’t overspending and that your financial strategies align with long-term goals.
Staying true to your original vision and values is crucial during periods of rapid growth. It’s easy to lose sight of your mission in the chaos, but maintaining your core principles helps provide direction and purpose. This alignment ensures that all decisions resonate with your company’s core values, which is critical for sustaining customer loyalty. According to research, 56% of consumers stay loyal to brands that “get them,” and 89% remain loyal to brands that share their values.
Prioritizing Customer Experience and Innovation
During periods of rapid growth, it’s crucial not to lose sight of what made your business successful in the first place – your customers. “You can’t forget about the people who helped you get to this phase in the first place. Prioritize customer experience by maintaining high standards of service, responding promptly to feedback, and continually improving your offerings,” advises Maska. Loyal customers are your greatest advocates, and their continued satisfaction is key to sustaining growth.
Innovation is a critical driver of growth. “You got to this point because you were innovative. Keeping that innovative spirit alive will ensure your business remains competitive and adaptable, no matter what the market does,” adds Maska. Invest in research and development to continuously improve your products or services, and encourage employees to take risks and get creative.
Planning for the Future
While focusing on the present is necessary, planning for your company’s future is equally important. What is your ultimate goal, and what steps do you need to take to get there? “Don’t lose track of the long-term plan,” says Maska. A clear vision provides direction and purpose, guides your team through challenges, and keeps your business grounded.
Surviving the rapid growth phase of a business is a marathon, not a sprint. Taking a strategic approach to growth while maintaining communication and prioritizing your existing customers can help position your business for long-term success. Embrace the opportunities that growth brings, but remain vigilant and adaptable to ensure your business thrives in the face of change.
