Starting a business might be exciting especially if you are really passionate about your niche. Even then, passion is not the only factor that can build you up towards success–entrepreneurs should also be determined, hardworking and strategic.
Many entrepreneurs however, already crossed that bridge and had successfully grew their business from the ground up. If you are thinking about building a startup company, you would of course envision it to be a bigger one in the near future, but be ready also for the challenges along the way.
A growing business might be indicative of success, but it is not the end of the journey yet. This is in fact, the most crucial stage aside from launching the company itself. Many entrepreneurs experience “growing pains” in the process, and if not handled well, it could affect the finances and overall growth of the business.
No one can be fully prepared for it, but it is best to know what challenges could lie ahead for you as an entrepreneur while growing a business:
Recruiting and Retaining the Right People
- You may have gotten comfortable with the people in your core group and working with them feels lighter and easier because of a close-knitted company culture. However, going big also means that you need to hire and retain more and more employees as needed.
- As your company grows along with the number of people, it gets harder to maintain a close-knit company culture, and you may be forced to revise your benefits and compensation packages to ensure that the best people are motivated enough to work for the company long-term.
- And there’s the problem of hiring the right people and investing in good talent. Remember that businesses are not a one-man show, and you need to make sure that your employees are capable of handling business affairs in your behalf–that’s why it’s very crucial for you to pick the right people.
- Determining if whether or not a person is good for the job does not really come with a rule book. You simply have to have that instinct and gut-feel. Although the first thing to do is to look at their skill set, but it is also important to determine if they have the right attitude and if they possess greater potentials.
Loss of Vision for the Future
- It’s easy to lose track of the bigger picture especially when your mind is very busy with the day-to-day operations of your company. This is a common problem for entrepreneurs who are handling a growing business. Most of the time, there are just a lot of areas to iron out each day that you cannot have sufficient time to think about how best you can plot future growth and developments for your business.
- This is when your skill of hiring the right people comes in. With trusted employees, you can easily delegate certain tasks to them so you don’t have to do it all at once. You should learn how to mentor your employees properly and keep your hands off when they could finally function independently.
- Delegating certain tasks will free you some time, and will allow you to think and innovate ways for your company to expand and implement efficient systems.
Meeting Growing Demands
- Now that your company has established a customer base and is in fact expanding in size, a growing demand is a natural consequence. Again, this is also another reason why you should get the right people to do the job.
- With efficient employees under your wing, it is easy to meet customer demands and achieve customer satisfaction. A growing demand is not bad per se because it is an opportunity for you to create more revenue, the problem starts when you cannot keep up with it. Failing to keep up with a growing demand allows for your competitors to outgrow you–and no entrepreneur would want that.
Improving the Work Environment
- As your company grows, you need a bigger and better space to accommodate all your employees and the additional equipment for them to function. Moreover, your employees will have different and diverse needs in able to keep them productive and motivated throughout the day.
- This is especially true if you are employing highly creative people like writers, designers, and marketing people–most of them cannot fully function in a cubicle because their ideas will flow more if they work in a different, and more conducive office set-up. Because of this, you need to adjust your office to accommodate a creative group–like putting up a concept board, or allowing them to work in different locations at a time.
- Your expanding business is an indication that your customers love your product or service. However, even with such success, you should not stop looking for ways to enhance it. Keeping your product updated and relevant is one way to ensure that you can keep ahead of the competition, and even attract more and more customers.
- You can scour for innovative ideas from your disgruntled customers. Find out why they hate your products and improve from them. Sometimes, your critics can give you the best lessons.
It is easier to track a small-scale business, obviously, that’s why progress tracking is a great challenge for many entrepreneurs when the business is growing. Naturally, the areas to handle have become bigger and it could be overwhelming. Yet progress tracking is still very important for growing businesses because the insights are needed to determine key areas for improvement.
To overcome this, you need to effectively consult with your co-founders or partners and trust them in their areas of expertise. Delegation is still key when it comes to effectively monitoring the progress of your business.