GROWTH WITH PURPOSE DURING COVID-19: DON'T GROW FOR GROWTH'S SAKE
Entrepreneurs know they need to grow their business or the business will die, but they don’t often think about the right way to grow. So often entrepreneurs will grow revenue at all costs, not understanding the implications to cash flow or increased risk. Entrepreneurs DO need to grow their business, they just need to figure out how to grow at the right rate.
The COVID-19 crisis has sent our country in a tailspin. This is unchartered territory for everyone. Some businesses are growing, others are struggling to stay afloat, and others are closing their doors. Candidly, there will be many businesses that close their doors as they were on an unsustainable growth trajectory and were not aware.
While growing your business might seem like the appropriate response, it’s important to do it strategically. We caution you to know the strains it can have on your business:
Growing too fast can put financial strains on your business. Growth sucks time. It sucks energy, it sucks bandwidth, and it sucks money when you’re growing organically. It may seem counterintuitive to turn away business, especially when you are first starting out and are trying to grow. But sometimes you must. Know your financial picture and the implications any new business you are considering is going to have on your bottom line.
The coronavirus is having a significant impact on employees everywhere. Everyone’s situation is unique, and they are responding differently. There are concerns about health, the health of family members, and staying safe when coming to work. There is no right or wrong way to deal with this outside of being safe. I hope people can show grace to others during this period of time, and I think they are. Americans always rally from hardship when it’s all said and done.
Physical distancing and stay at home orders have landed “non-essential” employees in an unexpected remote work situation. Some have had technology challenges to overcome in order to stay connected. Others just feel disconnected not being in an office environment. While technology can provide a bridge to communication in the interim, some businesses may not be able to operate as efficiently as they did before. Carefully consider your execution risk in the current climate as you take on business growth.
Strategic vs. Tactical
The COVID-19 crisis has given us an unusual opportunity to think about our businesses strategically instead of tactically. It has made us stop, think and reflect on what is important, where we are going, and what prosperity looks like. Think strategically about the impact growth will have on your business.
Even after a vaccine or a treatment is created, the implications of the coronavirus will be here for a long time. We will all have a heightened sense of staying physically safe, emotionally safe and financially safe going forward. What safe looks like today and in the future is different from how it has looked in the past.
So consider these new realities when you grow your business. Don’t grow for growth’s sake. Now more than ever you need to grow your company with purpose.