Growth Outpacing Your Capital: Getting Back on Track to Success September 30, 2019 | By Phoenix Management | 2 Minute Read It is not uncommon for organizations to experience growing pains in the wake of rapid change, and this challenge is most likely one many business leaders have never faced before. In this entry, we consider how businesses can adapt to their new reality. Imagine this: your rising star venture has entered a rough patch. While mere weeks ago it was leading the market, today you have outpaced your ability to fund working capital, and a potential cash crisis is at hand. To add insult to injury, competitors have caught on to your innovative new concept and begun to introduce “me-too” products that are distracting your core market segment. With new challenges emerging from every angle, you wonder if it is possible to restore your venture to its former glory. Added complexities come hand in hand with growth. While at the onset you were operating at breakneck speeds without a moment to pause and evaluate your long-term strategy, now you must consider which offerings are your true moneymakers, and which it is time to shutter. At the same time, competitors are at your heels, so you have little time to waste in a misstep. With explosive growth comes the inevitable leveling out as the initial wave of success wanes. As you enter the next phase of your business, it is time to establish sustainable operating practices. Here are three different approaches to managing your enterprise’s growing pains: 1. Manage the Problem Internally In a period of significant growth, you may decide to single-handedly address the issues your business is facing. However, there are many complications associated with transitional situations, and despite your vast experience and skillset in your industry, this particular situation may be foreign to you. Without related experience or the requisite knowledge required to navigate your business to a more sustainable mode of operation, your experience may not make you the best candidate to accurately identify all of the underlying business problems and simultaneously keep up with everyday operations. 2. Eliminate Costs In an effort to consolidate cash flow, you may decide to cut costs and apply the savings to your working capital. However, if this direction is taken without sufficient knowledge of which products and services are making you money and which are bleeding you dry, you risk eliminating offerings with the strongest cash flow. In addition, impulsive actions, such as making immediate cuts, do not address underlying problems, leading to a temporary fix with no promise for a fruitful future. In order to work through your growing pains, you must look beyond your immediate needs for working capital to institute sustainable practices for your operation. eBook Your Guide to Making the Right Call Download Now 3. Utilize a Transition Expert With extensive knowledge and experience in minimizing growing pains and creating a sustainable business model for long-term success, transition partners target the true underlying issues within your company and select the proper course of action to take. Considering all possible circumstances, transition experts leverage years of experience to address complex situations, all while establishing reliable growth strategies that allow you to focus on maintaining the everyday functions of your business. Together, they help you establish short-term and long-term goals that empower you to reach a sustainable mode of operation. Transitional Management with Phoenix Phoenix professionals have been in your shoes and know how to rise above growing pains. With comprehensive experience and understanding, our experts will pinpoint all of the issues that led to financial trouble in the first place, rapidly establishing a modified business model that eliminates ineffective expenditures and generates long-term sustainability. As an extension of your enterprise’s management team, we can collaborate to consider all possible operational fixes and solutions for managing explosive growth, reserving working capital, and resolving financial crisis. Browse our vast array of industry experts and contact Phoenix to discuss you unique business challenges. Business Plan Validation Integration Services Operational Improvement