Rocket Growth - Every Company's Dream or Nightmare?

5 Quick Tips for Your Business

Understand the reason for your growth. Yes, it looks like you are actually doing something right. You're probably differentiating yourself well from the competition. Stick to your strengths and don't let your competition out of your sight. During rapid growth, it's easier than you think to lose sight of it.

Estimate your growth. Are you growing? Great! But when did it start, what's the direction of your growth, and when and at what point is it likely to stop? Analyze sales, assets, inventory, demand, assets, and receivables. When you have a clear idea of exactly where you stand financially, you'll also know if and how you'll need to refinance.

Our customer, our boss. No matter what stage of growth your business is in, always make sure you listen to your customers. If your customers are used to a high level of support, you shouldn't take that experience away from them. Also remember that in the digital age, a bad experience can spread through the internet in a matter of seconds.

Don't be afraid to hire people smarter than you. And if you already have them on your team, reward and motivate them enough to bring innovative ideas to keep the company growing smoothly. Rapid business growth often equates to an urgent need to hire more staff. Temporary employees are also a solution, as are external collaborations and various freelancers.

Draw on the advice of others. Being at the forefront of a growing company doesn't mean you're on your own. Put your ego aside and seek advice from entrepreneurs who have been or are in a similar situation. They can help you spot the first signs of potential or existing problems.

The Businessman Means, But Times Change

In general, it is quite difficult to determine the average lifespan of companies because it depends on many factors, including the type of industry, competition, economic conditions, and the firm's ability to adapt to change. According to some studies, more than half of new firms in the U.S. do not last more than five years, whereas, before World War II, large firms in the U.S. disappeared after seventy-five years. In Slovakia, according to information from 2020, around 25% of firms do not last the first year, and only around 50% reach 5 years. 

Many big players in the market such as Kodak, Polaroid, Kmart, General Motors, and Sony have also had to face existential problems. Several experienced entrepreneurs argue that success breeds failure and that the reason for growth and subsequent decline is the so-called 'resting on one's laurels', loss of vigilance, and belief in a kind of self-infallibility.

A good example of how to react to changes in external factors is Toyota and its hybrid engines. In contrast, Kodak, which was the first to market a camera for the mass market, once a dominant player in the photography market, went bankrupt in 2012 because it failed to adapt to the digital revolution. 

In all these cases, we can see that companies failed because of a failure to manage risk (Lehman Brothers), fraud (Enron), or a failure to adapt to technological change (Kodak). These cases show that even large, seemingly successful firms can fail if they make the wrong decisions or ignore important trends and changes in their industries.

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