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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » 5 Dangerous Stages Due To Rapid Business Growth

5 Dangerous Stages Due To Rapid Business Growth

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin
At first glance, rapid growth is a problem that all companies think they would like to have, however when demand grows too quickly most companies struggle to meet it. No matter how appealing it may seem, rapid business growth is accompanied by danger and potential liabilities that can kill a company just as easy as having too little growth.

Phases of Growth
 are the phases which the company goes through and at each stage there are a number of positive developments and risks associated with each phase, that the leaders must manage. The following stages are common place when rapid growth occurs:

1) The Conception Stage

Business Plan inaccurate
Ideas based on instinct
CEO centric
Culture undefined
Some customers close or already on board

2) The Introduction Stage

Wrong Partnerships developed
Competitor reactions
Hiring mistakes
Channels to market unclear

3) The Growth Stage

Processes not in place
Systems fail
Chaotic environment
Cash Flow challenges
Cash Limitations
Control
Service Quality
Communication
Hiring and recruiting difficulties
Production misalignment
Large projects consume resources
Culture shift
Forget original goals
Focus on short term
Leadership team gaps
Core competencies lost
Resistance to change
Approvals and control lost
Delegation in abundance
Lost business opportunities
Focus shift from existing customers to new

4) The Maturity stage

Cash Flow stabilizes
Profits predictable
Channel strategies in place
Competitors are strategizing
Revenues strong
Customers in place
Business is exciting
Dangers not understood
Lose major accounts.

5) The Decline stage

Diminished profits
Employee turnover
Low Job satisfaction
Unable to replicate earlier successes
Market pressures increase
Cash Flow weakens
Downsizing not in align with decline
Survival strategies not developed
Original culture gone
Company restructures or folds

Source: Chris Bartholomew - Founder & CEO 4X Inc
http://revenueconsultant.com

http://sharemarket-srilanka.blogspot.co.uk/

CSE.SAS

CSE.SAS
Global Moderator
Mr.Rishan needs to read this.

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