How do these increased expectations impact business?
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When Joe Walsh, Glenn Frey and Don Henley of the Eagles wrote Life in the Fast Lane in the late 1970s, little did they know how fast that lane would become. In an Amazon world where we can order anything online and have it delivered within a few hours, our expectations have changed. We live in an “everything, all the time” world. Even the speed at which we watch and listen to online content has changed. Speed-watching has become a thing. For example, on YouTube to save time, you can increase the speed of a video to watch it faster.
How do these increased expectations impact business?
Investors may be inclined to look for a “hockey stick” pattern, in which there’s a short period of steady growth followed by a dramatic period of exponential growth. This can influence startups that are looking for funding to focus on things that may offer quick growth in the short-term that may be unsustainable in the long-term. While rapid growth can be a good thing, it’s important to not get overwhelmed by that growth. The danger for startups that experience exponential growth is that they can’t keep up with demand over time and end up scrambling to meet quality and service standards. Slower growth allows a business to set up proper systems to ensure operational efficiency and scalable growth.
The Tortoise or the Hare Approach to Growth
Most startups begin with an entrepreneur who has an idea of a solution to a problem. That person does everything themself in the beginning, as they struggle to get the business off the ground. Eventually, as revenue starts to roll in, they can begin to hire people to support them.
As the team develops, they learn from trial and error and start to put systems and processes into place. If a business is experiencing explosive growth at this point, it may not have the time to put the proper systems in place. This can lead to poor quality or customer service issues, cash flow difficulties or HR problems. Managing staff workload is crucial to successful growth. Turnover can increase if the workload grows too quickly. This is where being the tortoise instead of the hare may be the better path to stable, long-term growth.
Aim for Sustainable Long-Term Growth
If you are experiencing rapid growth, you are obviously doing something right. Take the time to analyze what has led to your growth and how you can keep the momentum going without sacrificing quality or service levels.