There are things we do every day because…that's the way we've always done them. It's not a great reason but how often do we have time to step back and really think about it. If you're in a fast-growing company, it's likely not often. Check out this list of the top three mistakes that growing businesses make and how to fix them BEFORE they reach the breaking point.
Mistake #1: Maintain status quo
Expanding your business and winning new customers is exciting but it can be taxing for the people who help get products out the door and money coming in. You need to assess every area of your operations and look for easier ways to do more in less time. Wherever possible, leverage technology to automate tasks and increase productivity. Some key areas to consider:
- labour and materials tracking
- invoicing and administrative tasks (e.g., work orders, time sheets)
- monthly accounting and financial reporting
- inventory management
- customer service
- job / service tracking (field work)
Mistake #2: Don’t empower others
For a business owner, rapid growth can be stressful because it means you can no longer personally manage all aspects of the business. Since cloning isn’t yet an option, you have to hand off some duties. Lee Iococca, a famous American industrialist, once said: I hire people brighter than me and then I get out of their way. It’s a great strategy but destined to fail if you don’t give bright people the information they need to succeed. Ensure that these people can easily share real-time data:
- controllers
- warehouse managers
- procurement specialists
- sales and marketing managers
- field service technicians
- customer service representatives
Mistake #3: Make ‘gut-feeling’ decisions
Managing profitable growth requires strategic decision making. Do you expand to new markets? Start another shift? Where are your R&D dollars best spent? In today’s business climate, you need instant access to reliable data to outmaneuver your competitors. Invest in a technology solution that gives you a dashboard view of critical business information:
- Key performance metrics
- Cash flow status and forecasting
- Profitability by customer, product / service, and region
- Productivity by shift, machine, location
Takeaway – leverage technology to unlock your growth potential
In today's highly-competitive business environment, technology is emerging as the primary driver of cost control, productivity, and profitability. It’s difficult, though, to fully recognize growth barriers when simply managing the daily business is consuming all of your time. The key is to partner with an experienced technology vendor that will tailor a solution to your specific needs so that your investment quickly pays for itself by unlocking your profit potential.
Useful links related to this article
> Video (1:56): Leveraging ERP to facilitate rapid growth
> Whitepaper: Telltale Signs that You’ve Outgrown Your Current Systems
> 1-pager: Is Your Company Ready for an ERP Solution?
| Next month's article |
| Adopting LEAN principles in your small or midsize business |
| At its very core, the LEAN philosophy is a company-wide pursuit of efficiency. Variations of these principles are being adopted in various industries and in companies of all sizes. Read this article to learn how an ERP system drives LEAN benefits. |
|
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