With how competitive the startup business scene can be, pursuing rapid growth often becomes a means as much as it is the end. However, trying to achieve that requires a lot more effort. And you will also need some help.
Here, outsourcing will be an effective solution that you can turn to. But how do you harness it for such a lofty goal? Let’s take a closer look and find out.
Understanding Business Growth
Before we proceed, we need to look first at what rapid growth entails for your startup business. Here, we need to differentiate it from another type of business growth: organic.
Image from The Business Journals.
As its name implies, organic growth refers to your business expanding at a more natural pace. This is a bit subjective, as businesses grow at different rates. However, to be considered organic, the development of your business should come based on what it already has.
For instance, if your business can reach more of your intended market, you are already experiencing organic growth. It can also happen when you can sell your products to new geographical areas or more channels. On the other hand, you also experience organic growth if you can introduce a new product successfully to the same customer base.
Achieving organic growth will undoubtedly require a lot of time. Nevertheless, it will prove a much safer course for many. That is because you are already treading familiar territory and have more time to develop your business capabilities further.
Rapid Business Growth
In the case of trying to induce rapid business growth, your startup business willingly goes beyond its current capabilities. The goal is to achieve the growth that normally takes months or years to happen in just a short period.
You might ask, “Why would I want to do that?” Often, this comes as a response to an unexpected opportunity. For instance, a sudden influx of customers will boost your sales. Or you might discover that a business strategy gives you a lot more positive results and you would want to capitalize on it fast.
The Challenges Of Rapid Business Growth.
However, since you’re essentially trying to go through the business development process at a much faster pace, you will face several challenges. And if you are not able to surmount them, your business growth can come to an abrupt halt.
Staffing And Resource Problems
Image from Martech.
The first challenge you will likely encounter when accelerating startup business growth is staff shortage. Trying to cater to increased demand will often require you to put more workload on your staff while waiting for additional personnel. However, the regular hiring process might be too slow to meet those needs.
Uneven Cash Flow
An interesting thing about trying to capitalize on a period of rapid business growth is that you have to spend money to earn more out of it. However, it can be hard to keep track of your spending during this period. And if you are not careful, you can find yourself in various problems like not being able to pay suppliers on time.
Operational Inefficiencies
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Management mistakes and other operational inefficiencies are also a significant concern when trying to accelerate your business growth. After all, you are going out of your comfort zone here. And those mistakes can pile up if not handled correctly, derailing all your efforts.
Customer Confidence
As you try and chase more customers during this rapid growth period, you might lose touch with your current ones. That can result in them losing confidence in you. Keep in mind that this initial customer base will serve as the foundation of your business. So you would want to stay in touch with them as you rapidly expand.
How Your Startup Business Can Tap Outsourcing
By now, you already understand the benefit of outsourcing for your startup business. Those benefits get greatly amplified when applied to a push for rapid business growth. One of the most prominent of these benefits is cost reduction.
Through outsourcing, you can reduce the cost of getting additional personnel for your needs. At the same time, you can deploy this extra workforce faster than you can with hired teams. You also save a lot on hiring costs.
Cutting Down On Overheads
Another interesting aspect of cost reduction that outsourcing can bring is increasing your overhead savings. As mentioned earlier, you will often spend a lot to get your business up to speed. A large chunk of that expenditure often comes from overhead costs such as equipment and office space.
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In the case of outsourcing, the external team you employ is often a remote one. That means you don’t have to allocate additional budget for their infrastructure needs. This lets you keep your in-house team small and focused.
Increasing Efficiency Within Your Startup Business
Improving your business efficiency is another significant contribution that outsourcing brings to your attempts at accelerated business growth. And when you outsource, you are not just getting additional personnel to boost your numbers. You are also getting an expert team to help you out.
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These experts bring in much-needed knowledge and skills to improve your business processes. For instance, they can help you streamline your processes to boost efficiency. Beyond that, they can also help you build new ones. This is particularly essential, as you want your business to be adaptable during a period of rapid growth.
Creating A Sustainable Growth For Your Startup Business
Fostering rapid business growth isn’t just about gaining more customers fast. You also need to make it more sustainable to fuel long-term growth. This is where outsourcing truly shines.
Image from Purple Frog.
Forging a long-term partnership lets your startup business create a strong support system for its continued development. With that, you can fully take advantage of the rapid growth period. And when that is over, you and your outsourcing partner can develop a transition plan that will let you more effectively engage the customers you have gained and win them over for continued patronage.
Grow Your Startup Business Fast With Our Help
Virtua Solutions has partnered with different startup businesses for years. And throughout those times, we have developed a knack for helping them accelerate their growth. Sign up with us and we are ready to help you grow your own startup business faster.