Growing month after month for a startup can be necessary for the startup to stay in business. Growth comes in a variety of areas but the real growth that matters is that of overall profitability. This profitability should not come at the cost of providing a quality product or service. Founders of startups need to thwart those things that can stunt growth as this can do a variety of negative things. Certain investors might start to threaten to pull their funding as well as company morale can plummet. The following are what you need to watch out for as a founder that can stunt startup growth.
High Employee Turnover
High employee turnover is a nightmare for a company just starting out. Training an employee to become profitable for the company costs money and this money is an investment in the employee with the thoughts they will be staying with the company for the foreseeable future. Young as well as older employees that frequently work at startups might jump at a better opportunity. The way to retain valued employees is that of offering perks when you cannot offer them financial compensation. Offering an employee the opportunity to work from home permanently can keep this all-star employee for years to come.
Terrible Customer Reviews
The consumer is becoming more and more educated by the day when it comes to companies that they will do business with. Ignoring poor reviews online can look like lack of care about customer happiness regardless if the claims in the review were true or not. Replying to customer reviews can also help salvage a relationship if the customer had a less than stellar experience with the business the first time around. Monitor these reviews as they are used by consumers on a daily basis to check on the quality of a business, especially a new one.
Intellectual Property Disputes
The first thing that you have to do when creating anything whether it is content or a product is put a business lawyer on retainer. The company does not want to be stuck in court for months spending money on attorney fees while not profiting. Intellectual property is a complex aspect of some businesses so having this lawyer is important to run any ideas by them to see if the startup is covered legally.
Lack of Scalable Processes
Nothing can stunt growth of a company like receiving a large order then having processes break under the volume of the order. Scalable processes need to be developed early in the company’s lifetime so they can be ready if a massive client comes aboard. Take the time to look at processes and see what can be automated as this will not only save time but it will eliminate human error. Consult with employees to see how processes can be optimized as they are the one implementing them on a daily basis.
Consistent growth can turn a startup into a corporation that has been around for decades. Avoid the above issues to continue growing at a healthy rate!