Every business owner dreams of their company taking off and growing by leaps and bounds, whether through a stream of loyal customers, an effective ad campaign, or even a viral video. Unfortunately, not all companies are ready to handle sudden growth, and dropping the ball on an influx of new business could mean disaster later. In today's Aegis blog post, we look at some of the ways sudden business growth can impact a company, and how companies can be better prepared to handle it.
Need Larger Commercial Property
A sudden influx of customers and orders can result in a business quickly outgrowing its existing space, or needing a second location to meet demand. However, businesses that rush to find a new commercial space could find themselves financially committed to a space that meets only some of their needs, or is a problem location because of flooding or crime. Businesses should regularly evaluate their current commercial site needs and develop research plans of ideal second locations or larger locations if the need arises.
Have to Expand Workforce
Another issue that can impact businesses flooded by a surge of new business can be a shortage of workers. This is particularly true for retail and restaurant owners, who often face challenges in finding experienced workers in a short amount of time. To help minimize the risk of being understaffed, companies should also study their busier times, days, and months to ensure there is always adequate staff on hand, with trained backups ready to go if needed. In addition, it can be good to consult with a recruiting agency so they can help find talented workers to add to staff in short notice, allowing owners to focus primarily on handling business growth.
More Equipment and Inventory Needed
In order to meet customer demands or purchases, companies might need to quickly invest in additional equipment, tools, appliances, or even commercial vehicles in order to fulfill new orders. For restaurants, this might mean more POS terminals, additional kitchen equipment, or catering vans. For retailers, an influx of business might mean making additional purchases of raw materials or inventory to maintain stock. Companies should regularly evaluate daily, weekly, monthly, and quarterly sales records to ensure they can meet customer demand, and also ensure that they can quickly make upgrades or add additional equipment with ease.
Require Additional Commercial Insurance
Finally, when a company is experiencing a surge of growth and sales, this might also trigger the need to amend current commercial insurance coverage, especially if the growth results in more employees, more equipment, and a larger, or second location. Commercial Insurance is a vital piece of any business, but it's important to ensure the business is not underinsured if the number or value of assets have changed, or if there's a greater liability risk because of many new employees. Commercial Insurance should be a comprehensive package of policies that cover potential liability risks and provide financial assistance if disaster strikes.
Aegis Insurance & Financial Services is committed to helping businesses get the quality, reliable Commercial Insurance needed to protect their company, all at competitive rates. Aegis offers a full range of Commercial Insurance policies, including General Liability, Commercial Property, Commercial Auto, Errors & Omissions Coverage, Excess Liability Insurance, and tailored packages such as Restaurant or Retail Insurance. Contact our Aegis office at 713-850-7622 for more information, or fill out our online form to request a free quote!