Keys For Surviving The Rapid Growth Phase Of Business

Most entrepreneurs envision their business growing in some capacity. For many founders, the journey entails hitting a rapid growth phase, typically defined as increasing 15-25% annually, according to researchers. Most companies don’t reach this point. From 2010-2020, the average company grew by just 2.8%, with just one in eight reaching a growth rate of 10%, according to McKinsey research.

So, founders leading companies in a rapid growth phase should feel a sense of accomplishment. While exciting, this phase can also be extremely challenging. Growing 15-25% means expanding your business in new ways, which can stretch your skillset, budget, and patience.

How To Survive Rapid Growth

Surviving rapid growth requires a strategic approach and a resilient mindset. “Growth is an exciting challenge, not a destination. Don’t lose sight of building and scaling your business for long-term success,” says Jay Maska, CEO of Nonstop Financial. Here are some strategies to help you get through this stage of business.

1. Focus On Your Culture

Your company culture will naturally shift as your business grows. However, make sure to keep the essentials intact during rapid growth to retain existing employees and ensure your customers get the same experience they are accustomed to. “The first step to scaling culture is to define each company value or belief into two or three behaviors that people can observe,” advises Jordana Valencia. This strategy helps maintain consistency in the things that matter most amid extreme growth and change.

2. Focus On Scalable Processes

Scalability is crucial in managing rapid growth. “Your business processes got you this far, but they might not be enough to get you to the next stage of growth. Review and refine them regularly to make sure you’re equipped to handle an increased volume of sales without slowing down or losing out on quality,” says Maska. “Scalable processes will help maintain consistency, improve productivity, and give your team time to focus on strategic initiatives.”

3. Maintain Financial Discipline

Rapid growth often comes with increased financial pressures. It’s easy to fall into the trap of overspending in anticipation of future revenues. But this can lead to devastating outcomes if those future revenues never arrive. Also, it’s important not to lose track of the bottom line. “Companies that generate stronger returns attract and deploy more capital, a virtuous cycle that enables them to grow faster and generate still higher returns,” says McKinsey and Company. It can be worth working with a financial expert who can ensure you aren’t overspending.

4. Prioritize Customer Experience

During periods of rapid growth, it’s crucial not to lose sight of what made your business successful in the first place – your customers. “You can’t forget about the people who helped you get to this phase in the first place. Prioritize customer experience by maintaining high standards of service, responding promptly to feedback, and continually improving your offerings. Loyal customers are your greatest advocates, and their continued satisfaction is key to sustaining growth,” says Maska.

5. Embrace Innovation

Innovation is a critical driver of growth. “You got to this point because you were innovative. Keeping that innovative spirit alive will ensure your business remains competitive and adaptable, no matter what the market does,” adds Maska. Invest in research and development to continuously improve your products or services, and encourage employees to take risks and get creative.

6. Enhance Communication

Effective communication can become more challenging as your business grows. Establish clear communication channels to keep everyone aligned with the company’s goals and strategies. “Regular updates, team meetings, and transparent communication from leadership are vital. Additionally, keep communication lines open with customers, suppliers, and other stakeholders to build trust and collaboration,” says Maska.

7. Stay True to Your Vision

In all the chaos that rapid growth can bring, losing sight of your original vision and values is easy. It’s critical to stay true to your mission and ensure all decisions align with your core principles. 56% of consumers stay loyal to brands that “get them,” and 89% of customers are loyal to brands that share their values. In addition, 94% of people said they’d be highly likely to recommend a brand they were emotionally engaged with.

A clear vision will provide direction and purpose, guide your team through any challenges, keep your business grounded, and resonate with consumers.

8. Plan for the Future

“While you need to stay focused on the present, you must also plan for your company’s future. What is your ultimate goal, and what steps do you need to take to get there? Don’t lose track of the long-term plan,” says Maska.

Surviving the rapid growth phase of a business is a marathon, not a sprint. Taking a strategic approach to growth while maintaining communication and prioritizing your existing customers can help position your business for long-term success. Embrace the opportunities that growth brings, but remain vigilant and adaptable to ensure your business thrives in the face of change.