Three Hurdles Growing Businesses Face (And How to Overcome Them)

If your SME is expanding, congratulations on your first growth stint. Creating a well-known and profitable company takes time, so the more you can learn from this phase the better. This exciting period of rapid growth can be quite daunting if you aren’t prepared for the extra challenges your business will face. The increase in pressure could provide you and your team with opportunities to shine, but it’s worth getting your head around what will be required to smooth that process and keep your business operating at full-tilt.

Here are some of the biggest challenges growing businesses encounter, and some helpful ideas to help you manage them.

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Increased Complexity

In the startup phase, when your business was manageable and simple, you were probably able to spot trends, notice opportunities for improvement and predict what effect your decisions will have on your bottom line without the help of expert advice or sophisticated software. But now that your company is growing more complex, it’s seeking outside support to nail down your strategy going forward. For example, you may like to develop more effective and specialist procurement strategies with the help of trusted partners. You might also benefit from Business Intelligence (BI) if you find that your company has become too complex. This data-driven technology offers insights into the complexities of your business, helping you make better decisions.

Reams of Paperwork

As a small company, you may not have had to bother with much of the complicated regulatory requirements and red tape that will take effect now that your business has grown. The bigger your operation becomes, the more regulations you will be required to demonstrate adherence to, and the more crucial it becomes that you meet them adequately. Whether it’s trader regulations, HR regulations, or new tax requirements, making sure your business paperwork is up to scratch doesn’t have to be a headache. You’ll need to do extra due diligence, which your team may not be used to. The key is to be organised from day one. Effective record keeping and enviable File Management will save you hours when it comes time to compile the requisite paperwork.

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Your Office is Getting Too Cramped

When your company is growing, you’ll invariably require extra space for your growing team. Additional workspace requirements can be a headache, especially if your business hasn’t been around long enough to qualify for a long-term office lease. In your first major growth period, it’s helpful to look for real estate opportunities that offer the flexibility you require without a significant upfront investment. A coworking space could be the answer to your prayers, at least until you’re sure where your business is growing and can find a more permanent solution. If you’re limited on space, allowing employees to work from home is a great way to help not only cut down on the space you need, but also save you some money.

Growth can be an exciting time for you and your team, but it can also be a huge learning curve for all involved. The increase in demand might be exhilarating, but without the experience that comes from long-term engagement in your industry, your new business might hit a speed wobble or two. These tips will help you maximise this growth opportunity, without falling at the inevitable hurdles.

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