Eight Signs Your Business is Growing Too Fast
Business growth and expansion is always good – unless it happens too quickly. Yes, too much business growth can actually be bad especially for start-ups and small businesses, and rapid, uncontrolled business expansion can have negative repercussions in the short as well as the long-run.
And while expansion is always good, what smart business managers and entrepreneurs should look and strive for is ‘controlled expansion’.
Here are signs that your business is growing too fast, and things might be getting out of control.
These are some of the most common problems and it is essential to know these signs because an uncontrollable expansion is the easiest way to go out of business!
Sign 1: Your business expenses outweigh your revenues
When money going out of your business is more than what’s coming in, you know you’re in
trouble (or headed towards it at full speed)! For a business, cash-flow problems can stem
from rapid expansion because a growing business translates to growing business costs.
When a business expands, so do it’s expenses, and if cash going out of your business is
more than what’s coming in, you might be forced to borrow and take on debt, which is never
a good thing. Ideally, a business should be self-sustainable, which means that all business
expenses should be catered for through its revenues.
Sign 2: There are a growing number of customer complaints
When money going out of your business is more than what’s coming in, you know you’re in
trouble (or headed towards it at full speed)! For a business, cash-flow problems can stem
from rapid expansion because a growing business translates to growing business costs.
When a business expands, so do it’s expenses, and if cash going out of your business is
more than what’s coming in, you might be forced to borrow and take on debt, which is never
a good thing. Ideally, a business should be self-sustainable, which means that all business
expenses should be catered for through its revenues.
Sign 3: Your employees are overworked, and unhappy
Sign 4: YOU are overworked and unhappy
Sign 5: Your suppliers and other vendors can’t keep up
Sign 6: Your infrastructure, systems, and process are redundant or can’t keep up
Sign 7: Your emphasis shifts from quality to quantity
Sign 8: You start losing customers
Do any of these sound like you?
If so, you need to take action and seize back control over your business – for the sake of its
longevity and your future earnings. Here’s what I can do to help you right now:
- Keep track of your finances, and track more than just sales numbers to make decisions.
- Build your business to scale so business operations, technology, customer service, and human resources grow at the same pace to meet the growing demands of the business.
- Show you how not to get bogged down in micromanaging so you keep your focus on the big picture.
