Home Services About Blog Contact Us SCHEDULE A CALL Login

The Negative Side Effects Of Hyper-Growth

Livia Jenvey |  Nov 30, 2020

When a business experiences hyper-growth, it can be like winning the lottery.

A massive influx of sales immediately arrives as customer demand is incredibly high.  It's a business owner's dream to have their company's products be in such high requests you can't be kept anything on the shelves. Leading to suddenly doubling, tripling, or even quadrupling this year's revenue goal.  

Yet, with all the positive that comes with hyper-growth, there are also many negative side effects to be aware.

When a company experiences hyper-growth, this causes a massive constraint to the business operations.  If the business has a strategy for removing these negative side effects, the hyper-growth gains become long-lasting.  

However, if a company doesn't have a strategy for removing the negative side effects early, it can threaten the business to crash and burn. And all those the increased financial profits once gained become no more.

To ensure your company doesn't experience the harmful side effects of hyper-growth, consider having the following business operational strategy in place.

1. Determine Operational Risk:

During hyper-growth, risk can arise quickly within the workforce, supply chain, systems, processes, or procedures. These lead to huge, costly mistakes.  Review how all these areas are operating and determine the risk(s) to remove.  

2. Remove The Risk:

Once you've determined the type of operational risk to remove, create strategies to prevent these risks from happening.  For example, if the workforce gets overworked, the supply chain becomes taxed, systems crash or quality dramatically drops. Look for actions to take immediately to mitigate the risk(s) right away.   

3. Create Contingency Plans:

Once risk(s) removed, create contingency plans.  Plans designed are to be based on various scenarios that could stop your operations from performing efficiently day-to-day. When you work on your contingency plans, ensure they are both for short-term and long-term actions to put in place to prevent your business from crashing and burning.

Remember that with hyper-growth comes both increased profits and increased risk. To ensure your business continues to enjoy the long-term financial benefits of hyper-growth, follow the business operational strategy above.

Because if any of these operational issues are ignored, it will prevent your ability to succeed financially. Threatening everything you've built in your business for the long run.

To learn more about how Jenvey Consulting can help you with operational business strategies that reduce risk in your company, schedule a strategy call with one of our team members today. 


Are you looking for quick and easy leadership insights or tips to immediately achieve better results?


Subscribe to our Newsletter to receive weekly directly to your inbox insights & tips to help you 'Get Better Results Now.' 


50% Complete

Enter your contact information below to get access each week direct to your inbox insights and tips on expanding your leadership skills and managing your team at your best.