Gather the Support You’ll Need as Your Business Grows

 

Your new business, your professional baby, is the same. As it grows, you’ll need different kinds of support. I started my business 38 years ago; I’ve reinvented it five times. I’ve gone through several accounting firms, five bankers, and five landlords.

 

Change happens. Finding or creating the support you need for a changing business can be daunting, but if you establish a steady support system at home, recognize your own shortcomings, and remain flexible, it’s much easier.

 

 

The first thing to consider as you launch your firm is your own personal support system. You need to be fully engaged in the business, so who will support you as a person?

 

You’ll look to your spouse, family, and friends for understanding and caring in those precious few hours away from the job. Will your loved ones be there to support you during the challenging times ahead? 

 

Many new businesses fail not because the business failed, but because the founder became overwhelmed by the demands of running it.  

 

 

Once you have your personal team in place, you’ll need to find people to support your business who can do what you can’t. 

 

For example, if you’re a marketing maven but don’t have a head for finance or technology, you’ll need an accounting firm and a tech support company. If you’re the visionary sort, you need a less-dreamy organizer who can make your ideas work. If you’re an introvert who likes to close the door and get lost in details, look for a people person to support your staff.

 

 

As you start out, you’ll likely turn to other firms for marketing, legal, and technological support. You may want some of these to grow with the business; you’ll replace others over time as your needs change. Select these people with an eye toward long-term relationships. That continuity will accelerate your growth when it comes.

 

As you grow, the roles many of these people fill will shift. Your currently outsourced tech support may become a staff position. Your HR recruiting agency may need to assign a dedicated representative to your company. Anticipate that your needs will change, and plan accordingly.

 

 

As your company grows and you bring more staff in-house, pay attention to your finances. Keep your accountant and banker in the loop to watch for signs of trouble.

 

For example, you may have wonderful top-line growth in sales while running out of working capital because of the time lag between sales and revenue recognition. I rescued a company with more than $3 million in sales because it couldn’t meet an approaching payroll. The company had to create a financial solution on the fly using a referral to a bank and accounting firm. 

 

Make sure you have consistent, reliable support structures in place as you grow—their expertise will save you.

 

 

The support you’ll need when your company is mature will depend on your ultimate plans. Are you going to stay on as owner or sell? 

 

Most entrepreneurs aren’t prone to riding an organization all the way to maturity. They prefer to build something and move on to their next venture. If this is the case, you should begin grooming those in leadership positions to take over. If you leave, the business will already have the support it needs to continue running smoothly without you. 

 

This process is called “institutionalizing the business.” The better the business is institutionalized, the more valuable it is, whether you retain ownership or sell. 

 

As an entrepreneur, you are a creator of change. Be ready to recognize how your business is changing and how your supports may have to change as well. With the right planning, you can avoid the growing pains that sink other businesses.

 

How have your company’s needs changed as you’ve grown? What has stayed the same?