Big question Saabira. Short answer -- Don't over-hire. Hire smart people on a probationary period as contractors. They'll see how much room their is to progess. Challenge them, and keep those that are enthusiastic and hard working and that see the opportunity ahead of them at your growing company.
Expanding for the sake of expanding...
Where do you want to go? Why? Is your product or service needed where you want to go? How do you know? What does expansion do to your ability to deliver flawlessly to your existing customers? What will expansion mean to the Lifecycle of your current products and services and the P&S's in the pipeline?...
Be very clear about what you are expanding too!
All too often business expands on a successful aspect of its operations and fails to 1) integrate all other aspects of its business in the decision making and direction taking process and 2) fails to involve ALL staff in the conception and creation phase, therefore leaving out practical operational savvy from staff who hear about where their company is going and wonder why a specific basic has not been accommodated - seen easily from their perspective and not at all by the now removed management.
Recommend: Involve involve involve!
Saabira, you have some good recommendations. I would add that you should have the infrastructure in place to support the growth. Something I've see all too often is a company with a great product, great customers, and a lousy process to fulfill orders. Customers will find other places to meet their needs.
- Before expanding, make sure all systems and business processes can sustain growth. Do not expand too soon
- Before considering an expansion, evaluate your current capabilities. Most likely you will find an area or an aspect of the company which you will need to improve on.
- Never expand at the cost of quality whether it be customer service quality, product quality, or quality of personnel
Be realistic before you expand. Expend simply equal to high risk in term of the operating cost.
When you expand economy of scale is the first thing will come in your mind, bulk production mean high cost which might lead to low quality to cut your cost down.
When we look at expansion we look to what shape we want the company to be. Clearly the type of person you need to employ is dependent on the business you are in, but our business experience is to look at streamlining processes and "de-skilling" (terrible broad term) anything we need to do. By this we mean taking any of the technicalit out, in order to reduce the need to hire specialist people. Generally we look to ensure that the systems and processes are robust and simple to use prior to expansion. Going through this loop first can even avoid hires, expanding by getting efficient first is alot more cost effective.
Make sure you know the true potential before expanding. Do your homework. Ask probing questions of those who can and will affect expansion plans. Have a clear action plan...in writing. Avoid 'gut' decisions as much as possible. Look before you leap.
Share your ideas
10 Total
January 18, 2008 at 10:20am
scott chappellBig question Saabira. Short answer -- Don't over-hire. Hire smart people on a probationary period as contractors. They'll see how much room their is to progess. Challenge them, and keep those that are enthusiastic and hard working and that see the opportunity ahead of them at your growing company.
January 18, 2008 at 5:09pm
Nicholas ParanelleExpanding for the sake of expanding...
Where do you want to go? Why? Is your product or service needed where you want to go? How do you know? What does expansion do to your ability to deliver flawlessly to your existing customers? What will expansion mean to the Lifecycle of your current products and services and the P&S's in the pipeline?...
January 21, 2008 at 5:38pm
Paul HodgmanBe very clear about what you are expanding too!
All too often business expands on a successful aspect of its operations and fails to 1) integrate all other aspects of its business in the decision making and direction taking process and 2) fails to involve ALL staff in the conception and creation phase, therefore leaving out practical operational savvy from staff who hear about where their company is going and wonder why a specific basic has not been accommodated - seen easily from their perspective and not at all by the now removed management.
Recommend: Involve involve involve!
January 31, 2008 at 1:47pm
Rick FeltenbergerSaabira, you have some good recommendations. I would add that you should have the infrastructure in place to support the growth. Something I've see all too often is a company with a great product, great customers, and a lousy process to fulfill orders. Customers will find other places to meet their needs.
--
Ask and you shall receive!
February 8, 2008 at 12:05pm
Dominic Anthony Tan- Before expanding, make sure all systems and business processes can sustain growth. Do not expand too soon
- Before considering an expansion, evaluate your current capabilities. Most likely you will find an area or an aspect of the company which you will need to improve on.
- Never expand at the cost of quality whether it be customer service quality, product quality, or quality of personnel
February 12, 2008 at 1:52pm
Iibrahim AlkendyBe realistic before you expand. Expend simply equal to high risk in term of the operating cost.
When you expand economy of scale is the first thing will come in your mind, bulk production mean high cost which might lead to low quality to cut your cost down.
February 13, 2008 at 4:17pm
Tim Tymchyshyndoes it fit into the current business
February 28, 2008 at 2:20am
Haifa FFFBefore expanding make sure you know Why you are expanding? and Where are you are going and finally When?.
March 16, 2008 at 4:05pm
Chris Carter BrennanWhen we look at expansion we look to what shape we want the company to be. Clearly the type of person you need to employ is dependent on the business you are in, but our business experience is to look at streamlining processes and "de-skilling" (terrible broad term) anything we need to do. By this we mean taking any of the technicalit out, in order to reduce the need to hire specialist people. Generally we look to ensure that the systems and processes are robust and simple to use prior to expansion. Going through this loop first can even avoid hires, expanding by getting efficient first is alot more cost effective.
March 17, 2008 at 12:39pm
rick wemmersMake sure you know the true potential before expanding. Do your homework. Ask probing questions of those who can and will affect expansion plans. Have a clear action plan...in writing. Avoid 'gut' decisions as much as possible. Look before you leap.
Share your ideas