When is business growth too fast?

April 29, 2011

business growthConfession: I love the Food Network show “Diners, Drive-Ins and Dives.” I make a mental list of huge sandwiches and house specials I want to try if I ever go to the featured city, and have even checked their list of past restaurants multiple times to see if there’s anything near me I missed, or if there’s anything host Guy Fieri visited in a city I’m planning on traveling to.

Apparently, I’m not the only one. This story in the Indianapolis Business Journal details the story of one local restaurant, Jersey’s Cafe in Carmel, its appearance on the show, and how it’s affected business in the process. Sales have jumped as more and more people are flocking to the restaurant — a good thing. But it’s also stressing out the cooks (several have quit), causing the restaurant to run out of items from time to time, and creating long wait times, especially on the weekends.

Which got me to thinking — at what point does growing your business quickly transition to growing your business too quickly?

According to this piece, a business is growing too quickly when it doesn’t yet have the people or processes in place for increased sales, clients, or whatever else it is that they do. That often leads to overworked employees and high turnover — as what has been happening at Jersey’s — and makes it more difficult for management to keep an eye on exactly where the business is making its money.

Have any of you experienced rapid growth in your business? What did you do to manage it?

This post is brought to you by the good folks at Dale Carnegie Training of Central Indiana, providers of professional development and management development courses and information in Indiana. We would love to connect with you on Facebook.

Image courtesy of MyTudut via Flickr
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