Achieving consistent, sustainable growth is likely to be a fundamental goal for your business. Expansion can lead to all sorts of exciting opportunities for your company and new experiences for your employees. But it’s important to be prepared for the obstacles that might arise on the path to long-term success.
From managing uncertainty to maintaining efficiency in an increasingly complex organization, here are some of the challenges your business could encounter as it grows, and some tips to overcome them.
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Download your free toolkit1. The demands of a growing workforce
To avoid placing unfair demands on your existing staff, enlarging your workforce is a key part of scaling up your business. Hiring new people helps with workload management but it can also prove vital in delivering the skills your company needs as it evolves.
Having more employees can create a number of challenges, from increasingly complex HR administration to the difficult task of engaging with individuals and meeting specific needs within a larger, more diverse workforce.
On the positive side, these are common business problems to which there are effective solutions, such as automated payroll software and HR management systems that help to deliver the best possible experiences for your people.
2. More diverse customer needs
Corporate growth is dependent on increasing revenue by bringing in new business. The inevitable consequence of this is having a larger, more eclectic range of clients, all with their own unique needs and expectations.
One of the fundamental steps required to consistently meet the demands of your customers is really knowing what they want. This involves the collection and analysis of as much client data as possible, as well as the establishment of strong customer relationships based on communication.
Healthy dialogue with all of your clients helps to ensure you know what they need and how they feel about the services you provide.
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3. Business intelligence requirements
As well as understanding your customers and their requirements, it’s vital to have a strong grasp of the intricacies of your own organization and the people within it. This can become increasingly challenging as the company grows and becomes more complex.
With the right practices, policies, and technologies in place, your firm can maximize its efficiency in gathering and analyzing business intelligence. There are many software packages and solutions available to help you understand your developing business.
As your company continues to grow, focused business intelligence could be the key to maintaining productivity and efficiency.
4. Inventory management
More customers equals more stock.
If you have orders flying in and don’t have enough stock, you could be forced to make some very costly last-minute decisions. Even worse you could lose valuable customers to competitors because your are unable to offer them the products they want, when they want it.
However, overstocking can reduce your cash flow and tie up valuable working capital.
A just-in-time inventory management solution connects your real-time financial data with your real-time inventory data to help you only stock products when they are needed.
5. Keeping the supply chain running
A healthy, functioning supply chain is really the lifeblood of any firm’s day-to-day operations. Without it, you will find it extremely difficult to meet the demands of your customers, especially as you expand and take on more business.
So what is the secret to ensuring your supply chain remains fit for purpose as your venture expands? To begin with, it’s vital to be constantly looking ahead with medium to long-term sales forecasts and to prepare for how these projections could impact your supply chain.
It can also prove highly beneficial to maintain contact with a large and diverse network of suppliers, to ensure there is always an alternative available if one partner is unable to deliver what you need.
6. New competitors
As you grow, you could find yourself entering markets and targeting customers that bring you into the orbit of new competitors.
Dealing with competition is a fundamental aspect of the business, of course, but it’s important for your long-term growth plans to include strategies to keep hold of your existing clients and acquire new ones, regardless of what your rivals are doing.
It’s important to always have one eye on your competitors, but equally crucial is the need to maintain focus on what your business does well and how it can continue to satisfy customer expectations.
7. New compliance responsibilities
Another unavoidable upshot of growth is that your organization’s compliance responsibilities will increase. Meeting existing rules and regulations could become more complicated as your firm and its workforce get bigger. There is also the possibility of having to meet standards from which you were previously exempt.
The recently launched General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) create a range of new compliance tasks that will increase in magnitude as your company expands.
As well as ensuring that everyone in your workforce is aware of regulatory demands and their day-to-day significance, it is worth looking into dedicated business systems that can help you stay in compliance with the latest legislation.
8. Keeping your culture intact
Amid all the excitement and potential of business growth, it can be easy to lose sight of what initially made your venture special and set you on the path to success.
An organization’s culture is embodied and maintained by its people. Take every opportunity to engage with your workforce, gauge people’s views on how the company is performing, and give something back to those who have contributed to your achievements so far.
With the cultural foundations that underpin your business intact, you can look to the future confident of achieving further growth and prosperity, whatever challenges arise.
Are you dealing with business growth challenges? Let us know how you are overcoming them in the comments below.
Editor’s note: This article was originally published in August 2018 and has been updated for relevance.
Any professional newly promoted to a management position faces a learning curve—and new challenges. It’s important for those new to a leadership role to realize that they don’t have to blaze a trail alone. The human resources team can offer valuable insights into team dynamics, company policies and more that can help new managers establish a firm footing and thrive in their new role.
So what kinds of tips can HR offer to help those new to leadership overcome those first critical challenges? Below, 12 experts from Forbes Human Resources Council share their experience and expertise.
Members of Forbes Human Resources Council share ways HR can help new managers adjust to a leadership role.
Photos courtesy of the individual members.1. Knowing Who To Trust
Knowing who to trust is a major challenge. Yes, HR is here for new managers, but if we aren’t viewed as credible, integrity-driven influencers, why would a manager entrust us with their career navigations? This is why every HR professional should be a business partner at heart. - Nakisha Griffin, Virtual Enterprise Architects
2. Learning The Organizational Culture
New managers do not become experts on the organizational culture right away. It will take time to build a depth of understanding. HR can be a real ally here for a new manager who might not want to have a misstep in the gray areas. Work with an HR business partner. Ask questions and get insight. - Dr. Marcia F. Robinson, Raye Martin Group LLC
3. Building A Supportive Network
New managers need a network of mentors and sponsors who can guide and support them on the leadership journey. HR leaders can arrange for mentorship and sponsorship opportunities and generally facilitate network development. This support must be in place during the first three months in a new management role, so the earlier a manager reaches out to HR for guidance the better. - Heide Abelli, Boston College
4. Understanding The Balance Of Power
A challenge new leaders face is clearly understanding the balance of power and the agendas of high-level stakeholders. HR serves every leader’s competing demands and must effortlessly navigate and balance those various demands. HR should be a visible value-add partner everywhere in the organization and in touch with the pulse of the organization at all times. Sharing this knowledge with new leaders—not hoarding it—will help them succeed. - Bryan Passman, Hunter + Esquire
5. Giving Effective Feedback
New managers often do not know how to give feedback effectively to their team members. HR can help you deliver feedback effectively. Giving feedback is not a skill many are explicitly taught, but it is crucial to the success of new managers. HR can help you craft feedback and flex “muscles” that may not have been used before. - Katherine Myers, Respondent.io
6. Driving Results Through Others
Becoming a leader requires you to drive results through others, which is often the most significant shift in focus that you can make within your career. Ensuring that new leaders are appropriately assimilated to their team, the business expectations and the company’s leadership philosophy are all areas where HR plays a critical role. - Jennifer Garrard, Brother USA
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7. Doing More With Less Time
First-time managers must do more with less time by juggling between team needs and personal effectiveness. As a leader, they are learning to guide the team and build their reputation while at the same time working to be a productive employee. HR could help through orientation programs that train for time-, relationship- and team-management skills. Mentor circles set up by HR could help in leading with authority. - Kumar Abhishek, S&P Global
8. Having Difficult Conversations
Having difficult conversations—whether about performance, compensation or employee issues—often presents one of the biggest challenges for new managers. The HR team can help by proactively providing frameworks, models, “just in time” micro-learnings and real-time coaching to help new managers navigate these waters sensitively and appropriately. - Tracy Cote, Zenefits
9. Being Too Lenient Or Too Strict
New managers are often either too lenient or too strict. Working out where their values and boundaries lie is important. If they can see HR as an enabler—not process enforcement—they will be able to build a high-performing team. Working closely with HR can reduce the workload of a manager while delivering a better culture and performance from the team. - Karla Reffold, Orpheus Cyber
10. Assuming You’ll Succeed Without Help
A major issue with new leaders is assuming that what made them successful in the past will make them successful in the future. Sometimes, simply admitting you don’t know the answer when you encounter an unfamiliar situation is all it takes to be more effective, as well as recognizing that it isn’t a sign of weakness to partner with or be coached by your HR team. - Philip Burgess, C Space
11. Having A Growth Plan For Direct Reports
Having a growth and development plan for your direct reports is a challenge for new leaders. Beyond managing day-to-day activities, leaders have a responsibility to further develop the skills of their team members, and as a new leader, this can feel overwhelming. HR can help build and manage these development plans. - Jenna Hinrichsen, Advanced RPO
12. Letting Go Of ‘Doing’ And Starting To Lead
One challenge a new manager often faces is letting go of “doing” and starting to lead others to do. Many new leaders have been promoted because they were good at what they do, but as a leader, they must achieve results through others’ doing. HR can help a new leader by creating an individual development plan that includes coaching, skill drills and having a seasoned leader mentor the new leader. - Bridgette Wilder, Wilder HR Management & EEO Consulting