This magazine is all about business growth and offering advice to business leaders. But can a company grow too quickly? If growth is not gradual, does this leave businesses with gaps in departments and concerns with HR policies? Small companies can sometimes plough on without a HR department, but as the company gets bigger, the person who deals with HR queries may find they don’t have time to help staff properly as they will usually be juggling this responsibility with their day-to-day role.
Another question to ask is whether the right structure is in place for companies to keep growing? For example, does it have the right accounting software/expertise and is it following the correct regulations relevant to its country? There are many things to consider.
Our three experts delved into this question and explored the different aspects to consider. Bukki Adedapo, UK Country Manager, Fiverr, explained how having the right expertise is essential. He said: “More established businesses are already turning to freelancers to pursue large projects when teams are leaner. Businesses are able to leverage global talent, beyond their core in-house team to outsource the skills needed for individual growth projects – all without drastically disrupting cash flow.”
While Dean Sadler, Co-founder and CEO, Tribepad, looked at the complications with regards to hiring when scaling too quickly. He said that often businesses try to grow without having a plan in place, so employees end up with bigger workloads and working longer hours. He said: “Businesses need to ask themselves why they want to scale. Have they noticed a particular societal need they want to address? Is there a gap in the market? Or is it to make more money? No one driver is necessarily wrong or right, but an awareness of this will enable you to implement the tools and strategies needed to achieve that growth.”
Our third expert, Ben Elms, CRO, Expereo, looked at the importance of having the right technology infrastructure. But ultimately, he said, it is about the company’s culture. He said: “Ultimately, the most valuable way a business can incubate a growth mindset is through its people. Building a workforce that is agile and adaptable to change is imperative from a practical perspective, but at the same time, nurturing the right attitudes towards growth among staff is key to creating an ambitious company culture that is committed to business growth objectives.”
Bukki Adedapo, UK Country Manager, Fiverr:
An ambitious growth trajectory isn’t something that companies should shy away from. If anything, it’s a huge factor in keeping organisations competitive in a rapidly evolving landscape.
Our recent Business Trends Index, a collection of trending searches for services on Fiverr’s platform, revealed that in the past six months there have been large upticks in business naming services (+51%) and website development (+92%), suggesting that new businesses are still being founded in the UK. This is despite the macro-economic challenges and the fact that, according to a Fiverr study, 92% of UK start-ups and small businesses are fearful about the future of their business. This only increases the need for businesses to seek growth to get ahead of the competition. Any level of growth can be risky, especially when undertaken in a short timeframe, but deploying the right tactics and leveraging the right talent will help differentiate businesses and alleviate the risk.
Having the right expertise is essential. More established businesses are already turning to freelancers to pursue large projects when teams are leaner. Businesses are able to leverage global talent, beyond their core in-house team to outsource the skills needed for individual growth projects – all without drastically disrupting cash flow. There’s a myriad of freelance talent that is accessible. Fiverr’s recent research found that side hustle culture is more prominent than ever, with 47% stating they no longer trust full time employment, and over half (57%) of UK workers laid off since December 2022 are now exploring alternatives to full time work.
Demand for these dispersed teams has increased exponentially in the past couple of years, which is why earlier this year we launched Project Partner – a solution that bridges all communication between freelancers and the customer, ensuring project delivery on-time and on-budget.
Overall, rapid growth can be risky, but leveraging freelance talent can help level out the risk. There’s less long-term commitment, and it’s a lot more targeted given you’re working with people based on specific project needs, while businesses are also able to explore new trends such as AI with real experts in the field.
Dean Sadler, Co-founder and CEO, Tribepad:
A company can grow too quickly if it is doesn’t have the strategies and structures in place to sustain that acceleration in the long run. There is always a trade-off between growth and hygiene factors in business. Growing faster will mean you need more capital which may have implications for sustainability or maintaining control of the business. It may mean that you have to hire people just because you need people, and that can have implications for culture and fit.
Hiring at scale involves not only hiring enough people, but the right people. At the same time as getting people in to do your work and hit your objectives, you need to ensure that you are set up to offer them a fulfilling career, good benefits and rewards and a working life that is balanced. Too often businesses try to grow without having a plan in place, so employees end up with bigger workloads and working longer hours, which can lead to burnout, presenteeism and absence – which is no good for anyone.
Hiring to scale your company can be resource heavy. Using effective technology to streamline and be more efficient through automations can help manage some of that workload, so your talent acquisition and human resources teams can focus more on the strategic side of growing teams. Hiring employees comes with significant costs, including salaries, benefits, recruitment costs and more. If a company scales too quickly, these costs can become overwhelming and lead to financial strain. If the business doesn’t have the revenue to support the rapid increase in headcount, it could lead to financial instability.
Rapid scaling can also strain resources dedicated to training and onboarding new employees. If a large number of new hires come on board in a short period, it can be difficult to provide them with the attention and resources they need to become fully productive members of the team. We need to ensure that as well as training for knowledge and skill, we think about job satisfaction.
Businesses need to ask themselves why they want to scale. Have they noticed a particular societal need they want to address? Is there a gap in the market? Or is it to make more money? No one driver is necessarily wrong or right, but an awareness of this will enable you to implement the tools and strategies needed to achieve that growth.
Of course, scaling isn’t linear. You may be growing quickly and the economic cycle changes and now you’re in a position where you need to lay people off quickly too. What are the implications for those people? They still have bills to pay and may be unable to find alternative employment quick enough. I think companies have a moral obligation to ensure that they can grow at a fast enough pace, while maintaining the sustainability of the business for all concerned, not just the founders or shareholders who want a maximum return on their investment.
Ben Elms, CRO, Expereo:
Growth is the ultimate ambition for the majority of businesses, but all too often they aren’t equipped to scale alongside it appropriately.
Regardless of company size, hitting a period of accelerated growth – whether through a merger, acquisition or market shift – can place significant pressure on the overall infrastructure of the business. Without the right technology, network connectivity, talent or culture in place required to facilitate fast growth, a business will inevitably be afflicted by diminished productivity and stagnating performance – in terms of revenue and sales – which, in turn, impacts employee, customer and investor satisfaction.
The biggest obstacle typically facing traditional organisations comes down to its technology infrastructure. In fact, our recent research of over 650 CIOs in global enterprises across Europe, US and APAC showed that over a third of businesses’ growth ambitions are constrained by legacy connectivity and management systems. As a result, 51% have secured increased technology budgets specifically to deliver growth and overcome existing challenges over the next four months. Balancing security posture alongside growth is particularly important considering the vast cyberthreat landscape facing businesses, and it was positive to see that security is a priority area for investment for 61% of CIOs.
On the other hand, digital-born businesses are more likely to be afflicted by challenges relating to talent acquisition, retention and maturity. The most significant inhibitor to growth initiatives for all businesses, however, comes down to its culture and growth mindset.
Ultimately, the most valuable way a business can incubate a growth mindset is through its people. Building a workforce that is agile and adaptable to change is imperative from a practical perspective, but at the same time, nurturing the right attitudes towards growth among staff is key to creating an ambitious company culture that is committed to business growth objectives.
This is easier said than done. We are currently afflicted with a skills shortage, and finding the right staff to support your growth initiatives can feel impossible. If left unresolved, existing staff will feel overworked and unhappy, and an organisation is at risk of leaving skills gaps in its workforce.
Organisations must understand how to build a culture designed to not only attract the right talent but keep it. In the modern working world, salary is no longer the biggest motivation for staff. Instead, professionals want to work somewhere where they feel valued and have a key role to play. Likewise, a company’s ESG stance is a significant motivator for attracting talent, regardless of the business’s brand power or scale. It is therefore essential for businesses to build a transparent, collaborative and modern operation, where everyone is aligned with its values and ready to grow.
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