Congratulations, you have reached this phase in your business. You got passed the rough, initial stage, and now the business is steadily flowing the way you want it. Sales are good, you have a constant stream of customers, and you got yourself a pretty lit team. Maybe it’s time to take that next step: the growth phase.
According to a study from the Oracle/Inc about the fastest growing companies in the US, when the big names were asked about the biggest obstacle to their business growth, they answered it was the ‘inability to manage fast growth’. Though this biggest challenge in business has been given, it is clear and has been proven that this hurdle is surpassable.
The success of the business lies in the ability to overcome this stage. The best and initial step to be able to do it is to assess if you’re ready for the hop. Here are the 5 signs to know if you’re ready to jump into the high-growth phase of your biz:
You’re doing what you love
For a successful business, it’s important to be certain that your mind and heart are in the right place. Passion, hard work, dedication and total immersion are necessary qualities to contain before you hop on the fast growth phase. You should as well be ready to face a ton of mental challenges like anxiety and pressure. Gather the ability to balance every aspect of life, such as your responsibilities for your family, for yourself, health and your business. If you see yourself doing this for a long time, and you have outshone all your dark doubts, it is time to take the next step for your business.
The money stream is becoming stable
This is the stage where you deserve a pat on the back. Your idea worked, your strategies are fully functioning, people love your business, and now the money is starting to roll in. The next step is to ask yourself a question if your business model is structured in a way that you’re not just making a profit today but can continue to be profitable. Remember, revenue and profit are totally different factors. If your business is already gaining a stable profit, and you think it can be turned into a scalable yet profitable game, you are now ready for the fast growth phase.
You have gathered the best members of your team
You know you’re ready when you know deep in you that you got yourself a killer team. Let’s admit it, not everyone, not even your most favorite friend, is capable of handling a growing business. People have certain characteristics that classify them as a good partaker of a business. These individuals usually have an experience with a large and thriving business. They have the will and the capability to understand the technologies needed to fuel sustainable, scalable growth. If your team has the skills to manage and inspire people; if they are masters of business technicalities such as sales, finance, marketing, communications, and logistics; or can they learn to be; go and head to the next stage of your business.
You have enough cash in the bank
When expanding a business, more expenses are set to be anticipated. Gathering enough money to overcome a possible cash flow crisis is a must before you hop to the next phase of your business. Growing your business may include a demand for an increased amount of stock, higher rent, utilities, and payroll. You must equip yourself with the right weapons before you head to the battle, and having a cash stash at your fingertips is just practical. If you are in the stage of your business where you are confident that you can cover additional outlays, then you are in the position where things will look good when you enter the next stage.
Your business is equipped with ideal processes and a killer system
As the business grows, systems and flawless processes become mandatory. These laid out blueprints will help you get through the rough roads and dips. Now is the time to take a look at your current processes, and see its strengths and flaws. Check if its paper-driven, if there are black holes where important data disappears, or if there are inefficiencies. If you have spotted its missing pieces, and have polished a more reliable system, now you can head to your next phase. The most important things to add are a software solution that allows you to track finances, sales, and talent; tools that provide real-time information on your expenses, sales, logistics, and other essential metrics; and practices baked into all of your business functions.