7 ways to manage a rapidly growing business

Victoria Pooley, managing director of The Data Partnership, looks at how business owners can ensure they are taking control and the best ways to manage the growth of a business.

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19th August 2010 at 12:08 pm

Many small business owners seek to grow their business more quickly and achieve increased profits while other businesses are already growing rapidly and want to manage and control that growth. Here are my seven top tips for managing a rapidly growing business:

1) If you look after people, they look after you – This is true for both staff and customers.  Happy, motivated staff is the biggest asset in any company and especially one that is growing rapidly. If your staff are passionate and care about what they do, then your customers will be looked after properly and stay loyal to your services.

2) Delegation is key – Rapidly growing businesses need constant direction to keep on track and to make sure that the original ethos and values you set out with don’t get lost in the chaos.  Delegate tasks that can be managed by others so that you free up your time to stand at the helm and direct.

3) Be more selective with clients – Learn to turn away business that is false economy.  If a client takes up too much of your time without spending much or always pays late after much time-consuming chasing, you would be better to use the time to service a more valued client.  Although do make sure you’re not rude, just be honest!

4) Increase your prices – If you have a very fast growing client bank then play the Supply and Demand game.  Just be careful not to upset your longstanding and reliable clients, but do make sure that you don’t undersell your efforts.

5) Outsource some services – If some of your offerings could be done cheaper, but as efficiently elsewhere, then outsource.  This will free up more time for you to manage other areas and hone other skills, but do make sure you do your research so that you maintain the same level of service.

6) Watch your cash flow – Poor cash flow management is the main reason many new businesses (and established ones) fail. It seems obvious, but if you are offering better credit terms to your clients than you get with your suppliers, your cash will dry up leaving you with no contingency should a client fail to pay or you need to increase an order with a supplier.

7) Bang a big drum – Shout to all about your success. Let everyone know, competitors and customers alike how well things are going.  Customers like to know that they are dealing with stable and successful companies.  And making your competitors nervous can never be a bad thing!

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Victoria Pooley

Victoria Pooley in managing director of The Data Partnership, the UK's leading provider of opted-in consumer lifestyle data to the direct marketing industry. With over 3 million consumer records The Data Partnership is committed to helping companies and organisations exploit their most profitable markets. www.thedatapartnership.com http://www.thedatapartnership.com/

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