October Snow and Growing Pains

We’re not supposed to get a foot of snow in October, but that’s what greeted me the other morning – along with no electricity… The transition from summer to winter (aka fall) is supposed to happen a little smoother – some cool crisp days, maybe a frost or two, then a few flurries in November, and frozen ground mid December. Fall foliage covered in snow is not in the plan.

This disorderly move from one season to the next is similar to the growing pains many companies experience. Instead of seamlessly adding new channels or upgrading processes, they often stumble their way to the next level. Since growth is pretty much at the top of everyone’s list, successful companies will eventuality run into these bumpy transitions. This happens whether they are adding outside capital or building sales organically.

So what can you do to try to avoid getting snow on your foliage? Here are a couple ideas.

• First is to realize that it will happen. Companies growing from a few $M to $10M as well as those going past the $50M watermark will run in to this. It’s human nature to put your head down and grind away, assuming these little challenges are just another small hill to surmount.

• The most obvious sign is that you and your people are getting lost in your pile of information, and becoming less organized in your execution. Spreadsheets are no longer giving you the forecasts you need – its time to put in some infrastructure and processes that are designed for this purpose.

• Management styles need to evolve from the collegial, flat, all-for-one approach to a more formal organization. I’m not saying you need an HR department, but the organization needs more structure to function efficiently.

• Last, but certainly not least, your strategy needs to move from a product or product-line focus to a broader corporate viewpoint. A product view will get you to a couple $M, but more pieces are usually needed to build the company to the next niveau.

Growing your company is a somewhat chaotic, but supremely satisfying achievement. But be aware that snow can fall before you expect it. When the warning signs appear, be sure to change the way you are doing things, before the lights go out.