5 Common Issues Created By The Growth Of A Company

Growth of a business is always the goal of a founder whether it is growth in revenue, employee number, or recognition in an industry. All types of growth come with issues that can be considered growing pains as they would not have arisen had the company not grown to a certain size. There are certain issues that are unavoidable as a business grows. Therefore, having a plan of action when these problems do occur is important. The understanding that these issues do happen at most businesses will keep management from making rash or unwise decisions. Taking a proactive approach to remedy issues caused by growth is the best practice. Below are common issues caused by growth. Read on to learn about them and discover how to overcome these hurdles at a business.

Process Change Resistance

Startups that have grown immensely over the years might have staff resistant to the growth. Those that have a poor attitude about changes in policy or processes need to have a meeting set up. This can address the lack of flexibility as this is an attribute all companies want in an employee. After all, businesses that follow organizational change models successfully navigate growth.

Employees unwilling to learn or adapt might see the business outgrow the need or use for them. A tactic that can be used is to show the growth an employee can have throughout a company. Clarifying career paths at times will solve the confusion a person on the staff might have about their future with the company.

Interview Process Abandonment

The need for more employees quickly does not mean that a company should abandon its interview process or expedite hiring. Current staff can be a great resource by referring people that they have worked with in the past. Most people are not willing to give a recommendation that could paint them in a bad light at their company. The majority of people will recommend an all-star employee as they will be credited with helping hire a top performer. Internship programs are great for companies that are hiring as it can be a way to test out a intern’s working style as well as their fit in the company culture. Put together an interview process that includes processes for finding quality candidates. The best processes also include specific interview formats such as panel interviews. Regardless of the layout you choose, do not abandon your thorough process after growing your business.

Outsourcing Entire Departments

There is going to come a time where a company realizes that an entire department can be outsourced to save money and increase the quality of work. In-house marketing teams are often laid off in favor of a marketing firm that delivers a better ROI and more consistent results. Companies that have grown might look into colocation. Colocation involves renting space at a data center to store company servers. There are plenty of companies like Flexential that provide businesses with hosting servers. Companies rely on such servers for outsourcing purposes.

Poor Communication

As a business grows, the communication throughout the company can worsen. Many teams throw their communication models out the window. Such companies suffer the consequences. Instead of continuing to grow, they reduce their productivity levels. In order to, instead, boost your productivity levels, you need to create and maintain an effective communication model. Provide your team with numerous communication outlets. Common outlets include email, text and, of course, in-person conversation. Use communication tools to collaborate with your team as your business grows. Then, you will avoid dealing with this common issue.

Lack Of CRM

Using some kind of CRM is absolutely essential when dealing with a large or small number of clients. Remember what was said on a call or in a meeting from months ago can make a client feel valued. There will always be one client rep that think a CRM is a waste of time but they might be saying this for a few reasons. One reason is that they do not want their knowledge of a client to be public as it makes them more dispensable. Another is that they simply do not want to put in the extra work of inputting detailed notes. The right CRM can salvage damaged client relationships as well upsell current clients that are already happy with services/products a company is providing.

Growing pains occur at businesses during times of growth and immediately after a growth spurt. Deal with these as they come but try to be proactive about preventing any of the issues mentioned above. Growth is a positive aspect of business so reduce possible negative aspects of a company being successful!