Business consultant Vahan Karian describes some of the pitfalls of uncontrolled growth, advocating for an intelligent and measured growth plan designed for long-term success.
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In the business world, the idea that growth is always good rarely receives much criticism. Yet young companies frequently fall victim to the results of too much growth with too little preparation. In order for growth to be beneficial to a company, it must occur in proportion to the company’s ability to take advantage of that growth.
Any cursory look at the history of America’s most successful companies will show that growth is the long-term, general rule, but not necessarily the day-to-day trend. Businesses that expand too fast risk diluting their company values and core competencies. They also increase the potential for costly mistakes at a time when they can’t afford them.
In order for growth to be successful, the company should match increased demand with increased quality control, an appropriate management structure, competent staff, and the financial backing to deal with unexpected scenarios. That often means passing up some short-term growth opportunities in order to let the company’s capabilities catch up to the demand. It takes patience and diligence to follow this approach, but it is likely to lead to greater stability in the end.
The most important considerations for companies experiencing high growth are scalability and product improvements. Presumably, the reason the business is growing has to do with the offerings of the company. As the customer base expands, however, the company needs to ensure that quality remains high, the product continues to meet customer needs, and the competition is kept at bay. Scalability planning will provide the capacity to continue growing in a manageable way, and product improvements will help the company maintain its competitive advantage.
Finally, consider the role of people in your growth plan. Managers and executives who proved invaluable at earlier stages may not have the skills to guide the company through the next stages of its development. Learning how to hire the right people for the job will also improve your chances of benefiting from growth.
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In the business world, the idea that growth is always good rarely receives much criticism. Yet young companies frequently fall victim to the results of too much growth with too little preparation. In order for growth to be beneficial to a company, it must occur in proportion to the company’s ability to take advantage of that growth.
Any cursory look at the history of America’s most successful companies will show that growth is the long-term, general rule, but not necessarily the day-to-day trend. Businesses that expand too fast risk diluting their company values and core competencies. They also increase the potential for costly mistakes at a time when they can’t afford them.
In order for growth to be successful, the company should match increased demand with increased quality control, an appropriate management structure, competent staff, and the financial backing to deal with unexpected scenarios. That often means passing up some short-term growth opportunities in order to let the company’s capabilities catch up to the demand. It takes patience and diligence to follow this approach, but it is likely to lead to greater stability in the end.
The most important considerations for companies experiencing high growth are scalability and product improvements. Presumably, the reason the business is growing has to do with the offerings of the company. As the customer base expands, however, the company needs to ensure that quality remains high, the product continues to meet customer needs, and the competition is kept at bay. Scalability planning will provide the capacity to continue growing in a manageable way, and product improvements will help the company maintain its competitive advantage.
Finally, consider the role of people in your growth plan. Managers and executives who proved invaluable at earlier stages may not have the skills to guide the company through the next stages of its development. Learning how to hire the right people for the job will also improve your chances of benefiting from growth.