Ask around, and most business owners will say that they’re looking to grow and make more money. But good business sense says that it’s better if you plan for growth, not just ride the wave of a quickly-growing business. When business is booming, there are a few key ways to ease those growing pains and keep your company on track for success.
By taking a small step back to analyze the changes your business is experiencing—and how to navigate the uptick—you’ll be better prepared to handle long-term growth with confidence. You don’t want to overextend yourself, your team, or your accounts. You also don’t want to overestimate your growth and end up falling short not much farther down the line.
Review Your Business Accounts
Bringing in new clients or upping your sales can be great for small businesses. But if your company is growing too fast, your cash flow might get out of sync with your new load of day-to-day expenses. Paying your bills on-time and being able to keep up with the new supply costs can be tricky to manage if you aren’t watching your books. Although the phone is ringing and you’re closing deals, you may find that the company is having problems with liquidity. Taking time to analyze your receivables and payables can help give you clarity for business growth.
It may be necessary to rework how you’ve managed receivables in the past to keep up with the new demands. Consider updating your collection methods to ensure you’ll always have money coming through the pipeline. Getting more specific about your payment terms can work to urge clients and customers to make payments promptly to avoid late fees. Find where money is getting tied up, and then find a plan to improve your systems. Then you can resolve problems before they escalate.
Improve Team Management
Hiring new employees can go hand-in-hand with your business growth. As long as you’ve assessed the situation, this can be an exciting new stage for your business. These changes can be fun, but you still need to make sure you are paying your employees on-time. If you’ve been used to doing payroll on your own, rapid expansion might require you to outsource those duties. An experienced payroll company can help free up more time for you and keep your business organized. Managing new employees (and knowing whether you can realistically take on the new expenses) is easier to determine when you have an expert to advise you.
If you don’t have a dependable team, your business growth could very easily come to a screeching halt. Being able to keep your team motivated and focused will help your growth strong and steady. To avoid employee burnout, be sure to plan for special appreciation events. Being able to splurge a little on group lunches or even a happy hour can do wonders for morale. Providing new branded gear can also be a fun way to show your employees you care, too.
Confirm that Business Growth is Sustainable
Above all else, seek to gain a better understanding of why business is improving. If you don’t quite know the causes, you might make the mistake of thinking that seasonal growth is long-term. Is your growth a permanent shift, of will the situation return to “business as usual” in just another month or two? Talk with financial experts and your trusted business advisers to analyze your current circumstances. If you can take good care of your team and review your accounts, it will be much easier to plan for the future.
Knowing your financials can be the key to your continued growth. Utilize the data you have to discover what’s helping for your bottom-line, and what’s working against it. If you’re unsure of where to start or how to improve, it’s probably time to hire a bookkeeper! Savvy business owners know that having their books up to date at all time is a valuable part of making decisions about their growth.
Helping your build on your past success is at the heart of what we do at The Payroll Department. If you have concerns about how fast your business is growing, or whether your accounts are accurate, please don’t hesitate to give us a call at (317) 852-2568. We love working with businesses of all industries and sizes. How can we help you sustain growth for years to come? Contact us today to schedule a consultation.
-Paige of The Payroll Department Blog Team