Published on July 23rd, 2013 | by Jose Vasquez4
4 Simple Ways to Manage Explosive Growth in Startup Tech Companies
Many startups fail when they grow too fast, but these four simple strategies can help stabilize your growth for a long, steady trajectory.
Too many tech entrepreneurs have fallen into the same trap. They come up with a great business model, start out strong, and by the end of the first year, their company is growing fast. It’s a dream for many; most CEOs fantasize about having an explosive period of growth, with tremendous revenue streams and an almost unmanageable demand.
But the difficult truth is that growing too fast can ruin your company. It doesn’t mean you should avoid explosive growth, but it does mean you’ll have to be careful to manage and control your growth so you don’t immediately burn out.
When your company begins to show signs of dramatically increased sales or interest, you have to be proactive. The sooner you gain control of your growth, the less likely your company is to succumb to the pitfalls of too-rapid acceleration.
These four strategies are simple ways you can keep your growth in check and prepare your company for long, steady returns:
- Hire, but don’t hire too fast. As you see increases in sales, think about hiring new staff—but don’t hire just anybody off the street. Take time to build a strong, talented team.
- Focus on what you’re good at. Invest in growth at your core competencies. Once you start seeing explosive growth in this area, don’t immediately run off to completely new areas. Focus on developing what you already know works.
- Don’t commit to a plan. It sounds strange, but don’t get trapped in a plan that might not be relevant for long. As you grow, things will change quickly. You need to stay as nimble as possible to anticipate and address these changes.
- Scale gradually. Only add new services or new products once you have a solid capability for what you currently offer. Don’t get caught up in looking twenty years ahead, either. Focus on slow development over the next few years.
With these simple strategies, you can keep your growth on a tight leash and scale without compromising your business model.