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by Linda Nash

You may have started your business on the kitchen table, then, oh joy, it grew. You added an employee or two and made things happen. After a while you reached a sort of “critical mass.” At first, growth is usually slow or at least manageable. But then comes that point—Malcolm Gladwell might call it the “Tipping Point”—it’s that critical number of clients, business income, or ROI. From that point on business can explode exponentially, continue with controlled growth, or stagnate because you fail to adapt. that you’re not disorganized.)

In general, business growth requires three critical organizational factors.

1. Hire the “right” people for the “right” jobs.

People are your most valuable resource. They are also costly. Think of any hire as an investment in the future of your business. You need knowledgeable, resilient people, those who can communicate effectively, which includes “playing well with others,” solve problems, adapt easily, and take responsibility for their actions.

So how do you find them? First, take the time to develop appropriate criteria for each position. What does it take to do the job well? Remember to consider transferable skills like adaptability, initiative, and cooperation.

Once you are clear on criteria, prepare interview questions that will elicit the information. Resumes are only a start. You’re looking for performance. Ask open-ended or situational questions such as, “What would you do if (provide a scenario related to a business situation or problem,)” or “tell me about a time when you showed (insert the transferable skill here.)” Then listen and ask clarifying questions.

Fast growth may mean fast decisions, but when it comes to employees, make those decisions carefully and impartially. You don’t need a clone. Hire people who compliment you.

2. Be willing to change. That includes organizational structure and market targets.

This is where many businesses fail. Change is difficult because it requires letting go of the way things have been. You have an office now and employees. Those pizza-at-the-house brainstorming sessions no longer work. Jobs that were once broad in scope must be narrowed in definition. It may mean hurt feelings and lost power for some original employees. This can be emotionally draining for owners when these are the people who helped you get started. But, it must be done. Swiss Colony, a Wisconsin-based company had to face this as its mail order business grew beyond a one-room operation. So did Yankee Candle of Massachusetts.

If you’ve grown large enough, you may need a chief financial officer, a human resources director, and even a CEO other than yourself. If you’re not as this stage yet, you may still need to rethink your organizational structure to ensure longevity.

Market targets must be considered. After printing your business cards you were likely thrilled to have any business. Times have changed. What market(s) will provide the greatest revenue for resources expended? As payroll and overhead expand, profits may diminish. Many businesses get to “critical mass” and then fail.

One such business was a competitor of mine. I owned two small retail music stores at the time and he kept adding several stores every year until he had eight. He was the apparent top dog covering a number of markets. Then a recession came along. His margins were too slim, he was overextended and his company fell apart in short order. I survived and continued to grow.

Is controlled growth the best for you? Kevin Short, president of OPAA Food Management, Inc., a provider of food service for Missouri schools, has guided his 27-year-old company to great success in a controlled growth mode. As his father before him, he has carefully expanded with an eye to exceptional service and long-term relationships. He always points out that it’s the people, both internal and external, who create your success.

Done well, exponential growth doesn’t mean failure. Build-A-Bear Workshop, World Wide Technology and Amazon.com are a few examples. Timing is important but so are great planning and strategy, the ability to market, and the three points in this article.

3. Let go, delegate and spend your time leading.

You too, are included in the change process, the letting go. Micromanaging is death for a growing organization. Delegate but don’t dump. Provide clear direction then let go and monitor progress. (That doesn’t mean hanging over shoulders.) If you’ve hired competent people they may do things differently, (there is more than one way), but it may be even better than yours. Results are what count.

Spend your time creating the vision, setting the direction, and monitoring progress. Of course, these were always your job. You may still need to do part of the work as in PR firms, advertising agencies and photography studios. Just don’t get bogged down in minutia and fail to see the big picture.

Tough decisions are part of the mix. And letting go of some of the things you like to do may be necessary. Growth does provide a mixed blessing. You started a company to see it grow. Often that growth necessitates your doing something entirely different than you had expected.

It’s your business. Decide how you want it to grow and why. If you make those decisions at the beginning and anticipate the potholes of change, the road will be smoother.

Carnival of Wealth Building Ideas has chosen this article as one of its “best of the week” (May 1st) picks. You can see it and many other wonderful, inspiring and informational articles at Best Debt Consolidation.

Carnival of Small Business Issues - Edition 1 has chosen this article as one of its “best of the week” (May 7th) picks. They have a plethora of excellent article relating to business issues, please check out Atlantic Canada’s Small Business Blog.

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