Practical Experience Sharing About Risk Involving In Business Growth

Practical Experience Sharing About Risk Involving In Business Growth

June 24, 2022

The majority of business owners want their company to expand. Many argue for their goals by citing their own “grow or die” myth and the notion that a business must expand to remain in the game. This isn’t the case. Actually, the reverse could be the case, because, as we all know there are risks that could hinder the growth of businesses.

If you run a profitable firm – one that is consistently profitable, any aggressive growth ultimate guide/plan can destroy it. This is why I am not denigrating the benefits of strategic business growth, including more profits, better stability, better value, and more chances for employees. If you do not make careful planning, growth could hurt a company in four areas.

Providing Services To Customers With The Same Level

A growing business makes mistakes. In fact, during times of growth, the quality of services and products is lower before it increases. When you have 99.9 percent web reliability, your clients will be able to tell. Recently, I was employed as the interim CEO of a major service company. In eighteen months we increased sales by 50% while maintaining our better-than-industry-average net profit margins. During this time, we also expanded our production and service staff.

More customers mean more interactions that brought more experience, and more chances for us to “shine according to what I instructed our managers. Because today, the customer is not “king” (able to set the rules) instead, they are “tyrant” (able to swiftly hit those who fail to fulfill their expectations) we looked over our standards for service, developed reporting systems, and decided how to follow up quickly whenever the company “missed” our high standards prior to our commitment to grow. The advancements we saw during the first year were carried into the next year.

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Culture Of Business Related Future

A big business is different from a smaller one. Not necessarily better. Not worse. It’s just different. When a business grows in size, its culture may alter. Some years ago, I was employed in the role of Chief Operating Officer (Interim) at a major independent financial company. Despite its successes, the business was slowing down due because of the organization and operation. In the course of this time, we transferred employees, drafted different job descriptions, developed new accountability levels, and improved standards for performance as well as all the things you would expect from. Thanks to the extensive approach, we collaborated closely with the director of human resources and found her well educated and caring.

This latter aspect was always hindering her. In her head, the comforting “family feel” was being sacrificed in favor of performance. The woman was correct. A little bit. Even though we set higher standards, we still remained supportive of employees, be fun, and provided personal touches. Nevertheless, the culture changed and she was soon offered another job. In a smaller firm. This is a cost – the risk of growth. In this instance, fortunately, the changes in culture contributed to a long and sustained period of expansion.