When you’ve hit success, it feels like you’re on top of the world. That euphoria can make you feel like you can take on anything. But when it comes to scaling your company, that isn’t always the case. Many businesses go under when they try to scale too fast. If you watch out for these pitfalls, you can make sure you aren’t one of them.
Treating All Audiences as the Same
Most businesses have more than one audience, even if they only sell one product. Different clients will come to you and use your products and services in different ways. Some of them will only try out free versions of your product and some will jump into paid versions. Some will be early adopters while others will only adopt after you’ve scaled enough for them to have heard of your product. You’ll want to know why each of your audiences are adopting your service and cater your marketing efforts accordingly.
Hiring Too Many People
You know what they say—too many cooks in the kitchen can make an utter mess. Hiring too many people can be just as troublesome as not hiring enough, and can have negative effects on your other employees. If you stretch your budget too thin, it doesn’t matter how well your company is doing, you won’t have enough money to go around. Get your necessities covered and then give it a month or two to see what happens before bringing on more employees.
Hiring the Wrong People
While it might be tempting to hire anyone who comes your way to fill your staffing gaps, hiring the wrong people can kill your business. If they don’t fit in with the culture of your company, your current employees will lose the motivation to work. Make sure you screen for culture fit as well as skill set. Keep in mind your company’s core values. Does this person share these values? If not, you’ll want to find someone better suited to your company.
Rushing Through the Job Description
You might feel like you don’t have time to write thorough job descriptions. Or you might think a good candidate should be able to learn on the job. Either way, you could end up hiring people that can’t do what you need them to do. If they lack too many skills, you might have to start the hiring process all over again. This will cost you time and money that you just don’t have.
Holding on to Stale Ideas
Sometimes when you are expanding, you should let go of ideas that worked well when your company was small, but that won’t work once you’ve gotten to a certain size. Company policies may need to change with company growth to accommodate the influx of new people. The best way to do this is to constantly evaluate where you are. What is working? What could use some improvement? Don’t be afraid to try new ideas to see what works and what doesn’t.
Ignoring the Market Data
There’s more data out there than you’ll have time to consume. Not taking the time to review relevant data can kill your business. You can wish as hard as you want, but if you try to do something the market doesn’t want, it won’t get you anywhere. Make sure you scale in a way the market will support. If you want to go a certain direction with your business, but the market isn’t interested in it, you’ll have to leave it behind.
Sustainable change takes time. You may want to be a million-dollar business right now, but life just doesn’t work that way. The giants in any industry took years to get where they are today, and you will too. Those big industries scaled when they were ready, and didn’t over extend themselves. They scaled to the right size at the right time.
Focusing on Sales Instead of People
There is so much going on in today’s world that you must fight to be heard. If your audience feels like you don’t care about them, they’re going to go somewhere else. Make sure you structure your marketing campaigns to focus on building audience trust. The sales will naturally come from that.
Neglecting to Write Things Down
Who needs to create a business plan when you’ve got it all in your head? Neglecting to create plans and document your progress to reach them can cause a lot of damage. You might know where you need to go, but what about other managers you hire along the way? How will they know how to help you achieve your goals if they don’t know what your goals are? Writing down your plans in a way that your other employees can understand will help them help you succeed.
Refusing to Hire Out Tasks
When you’re first starting out, you can’t afford to spend a single penny over your budget. But after you’ve grown and shown that your product or service has a demand, then it’s time to loosen up the straps a bit.
No one can do everything on their own. When you’ve got enough demand, you must delegate tasks. Using a recruiter to help you scale your company can help you save time for the things in your company that need your attention.
Is your company trying to scale quickly and effectively? Contact us today for help!