Every business strives to grow as fast as possible in the hope that it will satisfy its shareholders. What most managers forget is that there are dangers to fast business growth.
Communication breakdown between employees is such a danger. As new employees are recruited, previous employee relationships are neglected to make room for interaction with new employees. A small business where every employee was well a ware of the company’s actions suddenly turns into a segmented entity where individual employees no longer understand the direction of the company.
To avoid communication breakdowns, a well structured communication network should be applied. Ensure that vital decisions made by the directors are echoed throughout the organisation. Additionally, various business departments should have regular meetings both for employees within that department and between various departments so that the goals complement every department.
An even more critical danger is the absorption of all of the businesses credit into its products and services, arriving at a situation where sales are booming but there is no money left to purchase more raw materials making the business insolvent. Always make sure to even working capital in your business account at all time!
