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Rising net sales.
Five new store openings.
A record valuation.
These are all terms laypeople associate with business growth.
But what does growth look like to those down in the trenches? Unsurprisingly, the challenges are just as real as the possibilities for most enterprises.
Keep reading as we take a nuanced look at business growth and explore some unique ideas for mitigating challenges for scaling companies.
Creation of New Positions
As a business grows, it becomes increasingly obvious that more hands are needed. Not only in customer-facing roles, but in key decision-making posts. Without the right leadership in place, growth will not be efficiently channeled. Poorly-managed growth may even be the catalyst for implosion.
This need for strategic oversight in times of expansion has given rise to interim CFO services. More than just a consultant who makes recommendations from afar, interim CFOs entrench themselves amid the business’ leadership team. Whether your business lacks a CFO or if the current CFO is stretched too thin, an interim CFO can provide clarity, direction, and fiscal discipline in times of growth. They offer calm amid the chaos. They can renegotiate debt, prepare investor presentations, or simply bring order to financial reporting to effectively bridge the gap while the company scales.
Talent Acquisition Challenges
Piggybacking on the previous point: a growing business means more hands are needed. However, talent acquisition and retention can become more complex during times of growth. Some of the factors contributing to the flux include:
- Employee uncertainty, as growth may feel like instability
- New and evolving roles that are not clearly defined
- Not enough resources contributed to recruiting
- HR and payroll mishaps, as roles within the company are stretched thin
Due to these challenges, it is often recommended to outsource HR and recruitment to help limit the costs of hiring and employee defection during this period of change.
Financial Restructuring
There is a common misconception that financial restructuring is the domain of the struggling. After all, any search engine homepage will inundate you with the news that another of your favorite businesses is being bought out or filing for bankruptcy.
However, the need is just as real–if not more so–for burgeoning enterprises. The need for financial restructuring advisory becomes particularly acute when growth has outpaced financial controls. This type of specialized growth advisory can help optimize capital structures. It can streamline expenses and improve liquidity. Some other key tasks for scaling companies may include:
- Negotiating vendor terms
- Cleaning up legacy accounting issues
- Rethinking how teams are resourced
Remember, partnering with a financial restructuring advisor is not just about cutting/reducing costs during times of growth. It’s about allocating capital most effectively to capture the most value during ascent.
Alignment with Industry Regulations
“No one pays attention to you when you’re struggling.”
It’s one of life’s harshest realities.
And it’s not only friends that will suddenly come out of the woodwork to try and ride your coattails. Competitors will want to make sure everything is copacetic so that they’re not unfairly left behind.
This is especially pertinent in highly regulated industries and those that have a heavy public services element. For example, healthcare. Due to the high operational costs, complex payer structures, and intense regulation, it is crucial to use the best financial management strategies for hospitals and healthcare organizations to most effectively navigate periods of growth. Because top-notch patient care is even more important than the financial bottom line, small details such as managing billing cycles and handling insurance denials can add up to multi-million dollar decisions that affect quality of care and business profitability.
Software Migration
If you aren’t looking for new ways to automate tasks and leverage AI insights, then you’re not keeping up with the fast-paced evolution of business administration. Whether it be bookkeeping for doctors or just-in time inventory models for retailers, having the latest technology to help you do your job is crucial on multiple fronts. Not only does it help you save money and improve efficiency of administrative tasks, but it can enhance user experience and drive repeat business. The key is being able to effectively handle software migrations without disrupting operations or frustrating clients. Best practices when updating business software involves in-depth planning, careful execution, and robust post-migration support.
Preserving Company Culture
Throwing around the term “culture” is quickly becoming “the c-word” in business circles.
However, it can be extremely difficult to maintain the “life force” of the company during periods of growth. That special something that helped the business take off can easily get lost as the business looks toward the future.
As such, it is vital to keep culture at the forefront of all conversations, make a habit of regularly reinforcing values, and choose leadership that embodies the company spirit to guarantee your company remains true to itself as it matures.
Employ Cutting-Edge Financial Strategies to Ensure Seamless Business Growth
For those in business, growth is about more than just increasing revenue. It’s about navigating challenges and making key decisions to help the company ascend as seamlessly as possible. From interim leadership services to preserving company culture, consider any of the strategies listed above to handle business growth in stride. For more of the latest trends in business and finance, explore the content at Run The Money for additional thought-provoking reads!