When a business gets started, everything is focused on just trying to stay in the black and keep things operating. However, at a certain point, according to Eric Baird, growth starts to send signals that something bigger is on the horizon and the enterprise is on the verge of breaking out if the owners are dialed in. And that shift can happen very quickly in terms of the jump from a starting small business to a larger paradigm. Eric Baird explains this is also known as the Wal-Mart effect when a company suddenly has to expand fast to match the spike in increased demand for its new product or service.
Fortunately, Eric Baird confirms there are clear signs that can be seen if one knows what to look for. These include the following from Eric Baird’s experiences:
The Perfect Team is present – With a starting company the ideal team can be critical in bringing a great idea to fruition and succeeding as a company. The synergy of the right talent combination` can bulldoze through challenges that much larger companies struggle to solve. Eric Baird points out owners need to stay focused on strategy and nimble leadership. A high-performing team and help take care of the operations, so when they are in place, it’s time to kick growth into high gear.
Demand grows exponentially – When the order and sales start moving up the charts fast, it’s a high signal the company needs to be able to size up to stay on top of that demand. Eric Baird points out when companies can’t scale fast, someone else will come in and fill the market with substitutes. Vacuums don’t last very long.
Your analysis already told you to grow – Eric Baird has found sometimes owners go through an emotional tunnel, dealing with anxiety and fear about growing fast. This is often the case when their business analysis is already confirming the obvious, but fear of bigger failure holds people back. Eric Baird notes this is the ideal time to grow because holding back becomes clearly irrational and harmful to the business, letting the opportunity pass by.
Early goals are completely accomplished and checked off – Every new business has goals, make it through the year, hire five more people, double income quit a full-time job to run a small business full-time. Whatever those initials goals are, when they’ve already been met are about to be, Eric Baird argues it’s time to scale up to bigger targets fast.
Success is consistent – Seasonal success is common when riding the tailcoats of other business drivers like holiday sales, for example. However, when the company’s successes happen day in day out, Eric Baird points out it’s time to move into growth fast. The success is there but it won’t be if not used wisely.
You’re suffering from a good struggle – Bad struggles involve not having the right talent or not enough cash flow to pay bills. Alternatively, Eric Baird notes a good struggle involves more opportunity is available than one can handle. When that happens, it’s time to grow and respond to growing fast.