5 tips to prepare for good times
Every entrepreneur prays that their businesses will become profitable. But what happens when a startup’s growth outpaces the company’s ability to manage it? For some small companies, rapid growth can mean disaster. But it doesn’t have to.
Here are five tips from SCORE (Service Corps of Retired Executives) on how to prepare for growth spurts:
Get outside help
Growth is tricky and stressful, so smart business owners rely on outside assistance such as consultants or SCORE volunteers to get them through it.
Hire ahead of the need
If you’re growing fast, add a chief operating officer and/or a chief financial officer – even if only on a part-time or consulting basis.
Change your own role
Stop “doing everything yourself.” Delegate day-to-day operations to others and become the leader, the strategic thinker and the planner – in other words, the CEO.
Be selective
Weed out customers that don’t contribute sufficiently to your bottom line. Let go of those who distract you from your goal, for example, because they are outside the area in which you want to work or take too much of your time.
Save
Have reserve capital to weather growth’s inevitable bumps. Reserves don’t have to be all cash – they can be excellent receivables or something else that can be turned into cash quickly.        Â
More tips for businesses from SCORE can be found at www.score.org.
