10 Operational Issues That Lead to Bigger Problems

Everyone knows when a company grows, its operations grow with it, and the bigger the operations, the bigger the chance of operational issues. In our last article, we talked about 4 big operational problems growing businesses need to watch out for and avoid if they want to continue on their path of success. In this article, we’ll explore the topic more and discuss the smaller issues that, if left unchecked and left to linger, can lead to those bigger problems.

Now, let’s get into the details so I can tell you the operational issues you need to watch out for as your company grows.

Poor Planning

Everyone needs a plan, even a growing business. If you plan poorly (or don’t have a plan at all), your business will lack the foresight to see its operational inefficiencies and failures before they arise. Every growing business should have a scalability plan to avoid this. A scalabiltiy plan strategically outlines how you intend to grow your business and is a great tool for avoiding operational issues like some of the ones we’ll be discussing in this article.

Resistance to Change

There are two types of companies in the business world: those who embrace change and those who like the status quo. Unfortunately, companies that like the status quo can only grow so much. To avoid resistance, your company must promote a culture that embraces innovation and change. Any resistance to change will cause operational issues and hinder your company’s ability to grow.

Underestimation of Complexity

If you plan to grow your business, you can’t cut any corners when creating your expansion plan. Expansion plans can become very complex and sometimes leave you underestimating things. Avoid this by being as detailed as possible with your project planning, assessing all risks thoroughly, and having contingency plans just in case. Effective leadership requires foresight and implementing solutions that are easily scaled to accommodate growth.

Overexpansion

As your company starts to grow, it can be easy for everyone to get excited and start ramping things up. When all this excitement starts, it’s your job as a leader to reel everyone back in and make sure they stick to the plan. Expanding too quickly can easily increase expenses at a rate that outpaces revenue and strains your resources. You have an expansion plan for a reason, so stick to it and avoid this operational issue.

Poor Financial Planning

Having just discussed overexpansion, I’m sure you noticed another operational issue that seemed to be tied pretty closely to it: poor financial planning.   Growing a business requires money, and if you don’t budget accordingly for that growth, you are going to find yourself in a cashflow nightmare with bills building up. To avoid this nightmare, you must forecast and budget accordingly and have regular financial reviews to ensure your company’s financial health remains on track.

Rapid Growth Over Quality

Some businesses get so wrapped up in expanding that quality starts slipping and ends up taking a backseat along the way. Chances are, the quality of your products and services is a big part of what led to your company’s success in the first place, so don’t let it slip. The last thing you want is for customers to lose confidence and trust in your products and services leaving your company’s reputation damaged. To avoid this operational issue ensure you have solid quality control measures in place and they are being adhered to, even during growth and success.

Inadequate Customer Support

By now, you are probably starting to notice a trend. When a company is experiencing growth and success, it’s easy to get distracted, overlook things, and cause operational issues.

As touched on in the last point, customer satisfaction is something you don’t want to neglect. A growing company needs a customer support system that grows with it. To do this, you must have a plan in place that allows you to monitor and scale customer support as you grow. This plan should lay out the steps for growing your support system and team,  provide ways of ensuring new reps are properly trained, and have systems, processes, and resources laid out for them so they can adequately handle any increases in the service volume that might arise.

Neglecting Feedback

Customer and employee feedback provides a goldmine of insightful information that can drive improvement and ensure your company remains on track. When you neglect listening to this feedback you ignore signs that could help you avoid bigger operational challenges in the future. Do your company a favor and establish adequate ways of collecting, analyzing, and acting upon this feedback, and do it regularly. Don’t avoid this operational issue.

Rapid Hiring

Fast-growing companies sometimes rush to hire new employees and fill important roles. Rushing this process will only lead to bigger issues, such as assembling a team that may not align with company culture or hiring individuals who are not the proper fit or have the proper skill set for the job. This misalignment can destroy employee morale and company culture. To avoid this, create a structured hiring process that clearly states the upcoming positions that will need to be filled, the order in which they will be filled, and the requirements each candidate must have.

Ineffective Onboarding and Lack of Development

One thing equally as important as finding the right people is ensuring they are properly onboarded and trained. When things get busy, and there is a lot to do, it’s easy for a company to rush new hires through the onboarding and training process just so everyone can move on to the next step. Don’t allow this to happen.

Every employee needs to be properly onboarded and trained; otherwise, it will only lead to bigger problems. Ensure you have comprehensive onboarding and training programs in place and that they are always adhered to avoid this problem.

Conclusion

After covering all the operational issues that can pop up as your business grows, it is easy to see the importance of having a plan and a strategic approach for growing your company. Throughout the process, don’t let yourself or your team get distracted because if any of these smaller operational issues pop up and are left unchecked, it will only lead to bigger problems. So be proactive, put a plan in place, and grow the correct way on your terms!