Ironically, one of the biggest downfalls of a startup can be success. Naturally, you want your business to do well. However, when it does well too quickly, you might not be prepared to handle the influx of customers. If you can’t cope, your business may end up tanking. What’s the magic combination between too much success and just the right amount? It can be a hard balance to find, so keep these tips in mind to ensure that your growth doesn’t become your collapse.
Make Sure You Have Enough Staff
The first thing you should do when in a growth spurt is to hire more staff. The key here is not to go overboard, as you never know when your sales will cool down and you’ll be left with an abundance of salaries to pay. Instead, focus on your core team of employees and give them more responsibilities if they can handle them. Consider hiring seasonal or temporary staff, just in case your success is only a temporary bump in the road.
Rent More Equipment
If your warehouse is going crazy trying to fulfill all of your orders, you need to do something to help them. Consider renting equipment like forklifts to make the process go smoother. With a forklift, employees can easily move around heavy pallets, access hard to reach items, and keep your inventory much more organized. Orders will be fulfilled quicker, and customers will remain happy and confident in your business’s services.
Only Take Loans You Can Pay Off
Obviously, more success equals more money. However, your income still might not be enough to finance the products you need to keep your shelves in stock. One way to prevent this is by seeking out non-traditional loans, such as venture capitalists or peer-to-peer lending. Whatever you do, just make sure that you don’t take out more money than you’ll see in return. For example, if you need a lot of cash to fulfill a big order, don’t take out more money than the fulfillment of that order will earn you. Otherwise, you could quickly find yourself in debt.
Communicate with Customers
Customers might have no idea the night and day struggle you are going through to keep up with their demands. All they know is that they ordered a product or service, and they expect it to be there on time. If there are going to be any delays in delivery, you have to let them know right away so that you don’t ruin their trust in you. If you disappoint too many customers, you find that your sales plummet, and all that extra inventory you invested in will be left unsold.
It seems strange to consider success a bad thing. However, if you’re not prepared, it is a phenomenon that can overwhelm and drown even the most competent and experienced of business owners. Keep these tips in mind to help yourself stay afloat and grow even bigger as you tackle each and every demand thrown in your path.
Article by Ryan Tyson