Start-ups often run in continual crisis mode: every day brings them new challenges that need urgent solving and management spends most of its time in troubleshooting. Recognizing common pitfalls associated with business growth is essential if you want your business to continue growing and thriving. As your start-up will grow, you will need your strategy to evolve also in order to suit your new circumstances; this is why you need to plan ahead.
Plan the future
The plan that made sense to you a year ago is not essentially right for you at the moment. Market conditions change repeatedly, so you need to review and update your business plan frequently. Please see our article that details how to keep up with the market.
As your business expands, your strategy needs to progress to fit your changed conditions. For example, your approach is likely to shift from gaining new clients to creating lucrative relationships and amplifying growth with existing clients. Current business relationships often have a more significant potential for profit and can also provide steadfast money flow. Newest relationships can surge turnover, but profit margins may be low, which may not be supportable. Please see our article on Financial management and Money flow
At the same time, every company must be quick to new opportunities. There are definite risks in trusting solely on existing clients. Increasing your customer base extends those risks.
Following the same business model, but larger is not the only way to growth. There are other calculated options, such as outsourcing or franchising that could provide better growth opportunities.
It is imperative not to assume that your existing success means that you can repeatedly take advantage of these opportunities. Every significant move needs planning in the same way of a start-up launch.
Be careful not to be too opportunistic: ask yourself if new ideas fit your strengths and your global concept of where the business is going. Keep in mind that every new progress brings with it the changing risks. It is worth frequently assessing the risks you face and developing eventuality plans.