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Hub You - Control Your Growth - 9 Sure Signs Your Business Is Growing Too Fast
If you suffer from a long-term mental illness, like bipolar disorder, it's possible that your level of confidence in your ability to successfully start and manage a business of your own has eroded with time. Your efforts in the past may have left you feeling like a square peg trying to fit into a round hole - both in your business pursuits, and in the path of traditional employment.If not approached correctly, starting a business can be dangerous for a person with bipolar disorder, adding fuel to the fires of both mania and depression. People with bipolar disorder can be subject to manic delusions of grandeur, pursuing unrealistic business ideas, along with having grandiose and unrealistic expectations of themselves. After the period of mania wears off, the depressive mindset will likely set in, and with it, a realistic view of the unrealistic business they had been so excited about. They may feel foolish, and like a failure, and they may have also hurt and let down many people who believed in them.This cycle of feel
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategie
Most culinary schools today are still teaching their students how to compute the wrong food cost. Granted the math is right, but the dollars involved are hurting the bottom line of our restaurants. The problem arises from the separation of percentage points and dollars.Banks Use Dollars, not Percentage Points One thing I am quite sure of is that banks do not accept percentage points as deposits, believe me I’ve tried! For some reason the teller just looked at me dumbfounded then just started chuckling. Matter of fact she had so much fun with it she showed the teller next to her who responded in much the same manor. I didn’t find the humor in it since I had bills to pay, product to buy, and employees wanting their cash too. To rectify the situation I cowered to the pressure and made out a revised deposit slip using their required dollar standard.So if you can’t deposit percentage points why do most restaurants use this as their key focus goal? Shouldn’t the establishments focus on dollars instead? Your
1. Computers, desks and chairs become hard to find. You outgrow your office gear and employees find it hard to work with the space shortage and furniture scarcity.
2. You take on orders much larger than you should take or handle. Don't turn orders down, but don't sacrifice service and quality either. Make sure you can deliver on your promises.
3. You don't know most of the faces of your staff. Once you become unaware of the people working for you, things become impersonal and you will have lost contact with your business most valuable asset - your staff. Good staff is worth gold. Keep close to them or they will go elsewhere.
4. Employee morale is low, turnover increases, productivity drops. These signs show that the business and its management are growing to a level where staff are not being looked after or listened to. Watch your employees and discuss problems and take steps to resolve before they escalate.
5. You don't know what your competition is up to or what's happening in your industry. Never take your eye off your competitors or you will find yourself in major trouble.
6. You have more temporary staff employed than permanent ones. Too many temporary staff is not good for many reasons. Permanent staff is more likely to take an interest in the business and are more productive and loyal. Temporary employees leave and sometimes take important business and confidential information with them.
7. You have received customer complaints and negative feedback. Complaints from customers clearly point to something that is not going right. If you don't have customers you don't have a business. Repair this relationship quickly.
8. You continually operate in crisis mode. Dealing with an occasional crisis is one thing, running your business like a war zone is something else.
9. You're running out of cash all the time, Rapid growth can play havoc with your cash flows. Keep control of that cash or your business will quickly fold.
Watch the Dangers of Fast Growth
Is your company on a course leading to disaster? Some small businesses are often faced with the "too much, too soon" syndrome, where their business grows far too quickly for its founders to handle. While it is admirable for a well-planned and well-executed new business to grow, some small operations grow too quickly because management becomes flushed with early success.
The growth of a successful small business should not be measured by sales alone, but also by profitability. A small business can easily grow too fast. When this happens, cash-flow problems are the first warning signs.
A lack of adequate profitability, especially in conjunction with such infrastructure problems as rising inventory and receivables and declining employee skills will always result in cash-flow problems at best - and survival problems at worst.
While the founding entrepreneurs would have built a successful business, they would also have created a challenge beyond their expertise, management and abilities.
They launch into new product lines or services, expand into unfamiliar fields, employ too many employees, purchase expensive plant and begin plans for an IPO without the necessary experience, business skills, capital or support. As a result expenses start to exceed revenues at an increasing pace each new month and the business finds itself with huge problems to fix.
The company then begins to haemorrhage - and dies.
Growth Must be Based on Sound Evaluation
Often the decision to expand is based more on ego than on sound financial assessment, market studies or economic planning. As a result, the business charges ahead to take advantage of available opportunities even though there is not the required capital for the new direction. Being undercapitalised soon causes serious issues that hurt the business.
The owner and managers find themselves growing out of touch with their key employees on whom they must rely and production inevitably falls. Management becomes so involved with trying to administer all of the new operations acquired that it losses track of its essential core business functions.
Mounting overhead soon begins draining cash resources.
Cash Shortage Only the Start
These cash-flow problems are only the tip of the iceberg. Just below the surface are other more subtle indicators associated with too-rapid growth: unhappy customers, unhappy employees, strained systems and controls, and burned-out entrepreneurs.
Customer complaints increase and satisfactory servicing becomes a problem. Over dependence on a key customer, supplier, lender, or contract is another pitfall for growing companies. Small companies have to diversify their product lines, trading areas, distribution channels and targeted markets in order to prevent disasters.
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategie
With ECO issues making the headlines in most countries around the world, often the finger can and should be pointed at the large multi-nationals we see on our high street.We have been in business for twenty three years, over the last decade we have witnessed large national companies abandoning the local businesses in favour of, again, larger national companies. This has a damaging effect on local economies in many ways.For example, a large supermarket arrives just outside of town. We must agree that they generate extra jobs for local people that work in the store, but this is where the benefit ends, in my mind.Local, traditional shops close, with the loss of employment.The supermarket DOES NOT interact with other members of the business community, for example, in recent weeks we have spoken to an electrician working on a bank in Eastbourne, he was sent down from the midlands to execute three hours work! what a ridiculous situation, traveling two hundred miles, for three hours work, lets imagine the financia
6. You have more temporary staff employed than permanent ones. Too many temporary staff is not good for many reasons. Permanent staff is more likely to take an interest in the business and are more productive and loyal. Temporary employees leave and sometimes take important business and confidential information with them.
7. You have received customer complaints and negative feedback. Complaints from customers clearly point to something that is not going right. If you don't have customers you don't have a business. Repair this relationship quickly.
8. You continually operate in crisis mode. Dealing with an occasional crisis is one thing, running your business like a war zone is something else.
9. You're running out of cash all the time, Rapid growth can play havoc with your cash flows. Keep control of that cash or your business will quickly fold.
Watch the Dangers of Fast Growth
Is your company on a course leading to disaster? Some small businesses are often faced with the "too much, too soon" syndrome, where their business grows far too quickly for its founders to handle. While it is admirable for a well-planned and well-executed new business to grow, some small operations grow too quickly because management becomes flushed with early success.
The growth of a successful small business should not be measured by sales alone, but also by profitability. A small business can easily grow too fast. When this happens, cash-flow problems are the first warning signs.
A lack of adequate profitability, especially in conjunction with such infrastructure problems as rising inventory and receivables and declining employee skills will always result in cash-flow problems at best - and survival problems at worst.
While the founding entrepreneurs would have built a successful business, they would also have created a challenge beyond their expertise, management and abilities.
They launch into new product lines or services, expand into unfamiliar fields, employ too many employees, purchase expensive plant and begin plans for an IPO without the necessary experience, business skills, capital or support. As a result expenses start to exceed revenues at an increasing pace each new month and the business finds itself with huge problems to fix.
The company then begins to haemorrhage - and dies.
Growth Must be Based on Sound Evaluation
Often the decision to expand is based more on ego than on sound financial assessment, market studies or economic planning. As a result, the business charges ahead to take advantage of available opportunities even though there is not the required capital for the new direction. Being undercapitalised soon causes serious issues that hurt the business.
The owner and managers find themselves growing out of touch with their key employees on whom they must rely and production inevitably falls. Management becomes so involved with trying to administer all of the new operations acquired that it losses track of its essential core business functions.
Mounting overhead soon begins draining cash resources.
Cash Shortage Only the Start
These cash-flow problems are only the tip of the iceberg. Just below the surface are other more subtle indicators associated with too-rapid growth: unhappy customers, unhappy employees, strained systems and controls, and burned-out entrepreneurs.
Customer complaints increase and satisfactory servicing becomes a problem. Over dependence on a key customer, supplier, lender, or contract is another pitfall for growing companies. Small companies have to diversify their product lines, trading areas, distribution channels and targeted markets in order to prevent disasters.
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategie
Part 2 of Having Your Successful BusinessHow do they do it? Some people just have a knack for achieving whatever they set their mind to. In this section, I’m going to tell you why successful people begin to surpass their own expectations…and how you can to!One of the first things you won’t pick up on when speaking with these people is how they start conversation. “Hey, how are you doing?” Simple enough. We all do that. But stop and listen further.“How’s the family”, “How are things at work”, etcetera. They have mastered the art of conversation. Secret number one exposed: They are more concerned with YOU than themselves.Makes sense doesn’t it? What do people know more about than themselves? It’s everyone’s favorite subject plus it shows you are interested in THEM.Start thinking about what you can for others. The main goal in business isn’t how much money you make. Contrary to the main theories behind business, money shouldn’t be in the top three reasons.Customers keep your dream alive
The growth of a successful small business should not be measured by sales alone, but also by profitability. A small business can easily grow too fast. When this happens, cash-flow problems are the first warning signs.
A lack of adequate profitability, especially in conjunction with such infrastructure problems as rising inventory and receivables and declining employee skills will always result in cash-flow problems at best - and survival problems at worst.
While the founding entrepreneurs would have built a successful business, they would also have created a challenge beyond their expertise, management and abilities.
They launch into new product lines or services, expand into unfamiliar fields, employ too many employees, purchase expensive plant and begin plans for an IPO without the necessary experience, business skills, capital or support. As a result expenses start to exceed revenues at an increasing pace each new month and the business finds itself with huge problems to fix.
The company then begins to haemorrhage - and dies.
Growth Must be Based on Sound Evaluation
Often the decision to expand is based more on ego than on sound financial assessment, market studies or economic planning. As a result, the business charges ahead to take advantage of available opportunities even though there is not the required capital for the new direction. Being undercapitalised soon causes serious issues that hurt the business.
The owner and managers find themselves growing out of touch with their key employees on whom they must rely and production inevitably falls. Management becomes so involved with trying to administer all of the new operations acquired that it losses track of its essential core business functions.
Mounting overhead soon begins draining cash resources.
Cash Shortage Only the Start
These cash-flow problems are only the tip of the iceberg. Just below the surface are other more subtle indicators associated with too-rapid growth: unhappy customers, unhappy employees, strained systems and controls, and burned-out entrepreneurs.
Customer complaints increase and satisfactory servicing becomes a problem. Over dependence on a key customer, supplier, lender, or contract is another pitfall for growing companies. Small companies have to diversify their product lines, trading areas, distribution channels and targeted markets in order to prevent disasters.
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategie
Beginning an internet business can seem like climbing Mt Everest in tennis shoes to some of us. You have to make a lot of decisions as to what you are going to market, who you are going to market to, how you are going to market your product and/or services, how much you are going to charge, etc. As the old saying goes, “A journey begins with the first step”, so does starting your business begin with your first stepUsually, there are basically two types of people that want to start a business, planners and the action personalities. The planners will create all types of plans forever, but will be hesitant to take the first action step. Why? Usually it is due to a fear of failure of their plans.The action personality wants to start the business today and to heck with the planning, “Let’s just get this business going”. This person may succeed over time, but they most likely will spend a lot of extra money and wasted time in accomplishing success unless they are extremely knowledgeable about their potential customers.ms to fix.
The company then begins to haemorrhage - and dies.
Growth Must be Based on Sound Evaluation
Often the decision to expand is based more on ego than on sound financial assessment, market studies or economic planning. As a result, the business charges ahead to take advantage of available opportunities even though there is not the required capital for the new direction. Being undercapitalised soon causes serious issues that hurt the business.
The owner and managers find themselves growing out of touch with their key employees on whom they must rely and production inevitably falls. Management becomes so involved with trying to administer all of the new operations acquired that it losses track of its essential core business functions.
Mounting overhead soon begins draining cash resources.
Cash Shortage Only the Start
These cash-flow problems are only the tip of the iceberg. Just below the surface are other more subtle indicators associated with too-rapid growth: unhappy customers, unhappy employees, strained systems and controls, and burned-out entrepreneurs.
Customer complaints increase and satisfactory servicing becomes a problem. Over dependence on a key customer, supplier, lender, or contract is another pitfall for growing companies. Small companies have to diversify their product lines, trading areas, distribution channels and targeted markets in order to prevent disasters.
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategie
A recent national market research by Guideline, Inc. one of the nation's largest providers of Market Research Expert Consulting and International Research shows that, 85 percent of consumers typically watch movies at home on the small screen. Even when it's a movie they want to see, 49 percent of respondents said they usually wait to purchase or rent the DVD.To better understand consumers' perceptions and preferences related to movies, we conducted an exclusive survey among 1,000 consumers. Furthermore, to ensure the survey addressed all the current issues facing the movie industry, Guideline worked with members of the Promotional Marketing Association's (PMA) Entertainment Advisory Board, which represents all of the major studios in Hollywood, CA companies, to help craft the survey."Guideline's study affirms that DVD spending and consumption remain strong with more people enjoying movies from the comfort of their homes than in the movie theater," said Frank Dudley, Guideline's Vice President of Marketing.
Like it or not, as your business grows, your role within it must change.
- Instead of making things happen yourself, you must now convince someone else to make them happen.
- Instead of you spending time with your customers, you must now spend time with employees who in turn spend their time with customers.
- Instead of moving among the employees and doing the small things you like to do, you must now teach, train and move on to manage those things you don't always like to do.
Growing a business too quickly is dangerous. If the business lacks the capital, staff, time and expertise to deliver quality products and service customer requirements, then substantial losses in money and name will result to the business. The business must put in measures to prevent fast growth and put in strategies for planned growth.
It is absolutely critical for the business to be built on a steady and strong foundation at all times. Even though management may be tempted to grow the business quickly because the demand is out there in the marketplace for its products, it must aware at all time of the need to fund any such expansion. It is good to get high sales at rapid speed but uncontrolled growth would put the business into serious trouble.
The lesson to be learned is that growth is fine as long as it is done sensibly and slowly. It has to be planned. It cannot be hurried. It must involve all staff and resources.
It is far better not to take anything on, than to take it on and find that you cannot finish it off well.
Healthy Growth and Unhealthy Growth
There are basically 2 types of growth: Healthy Growth and Unhealthy Growth
- Healthy Growth
A Healthy situation can be easily confirmed by the business profit-and-loss statement and balance sheet. The Profit & Loss Account would show that the business's percentage growth in profitability was greater than the rate of growth in sales. A review of the balance sheet would show that any increase in the liabilities of the business would easily be offset by a greater increase in the company's net worth.
- Unhealthy Growth
You can identify Unhealthy Growth by taking a look at the business's financial accounts. Here the profit-and-loss account would show that the company profitability growth is less than the increase in sales. The balance sheet would show that the increase in net worth (equity) is falling behind the increase in total liabilities.
Business Can Grow Far Too Fast
The growth of any successful small business cannot be measured by its sales growth alone, but also by its profitability. A small business can grow too fast taking with it many problems. A lack of profitability, especially in conjunction with problems such as rising stock levels and increasing accounts receivables plus unproductive employee would eventually cause cash-flow problems and threaten the business's existence.
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