Growth-related initiatives don’t always go as planned for small businesses, often because the company attempts to grow too fast for its own good. Important tasks go ignored, values get compromised, and before they know it, the system that produced the opportunity to grow in the first place is all but lost. Some businesses don’t even realize that they had core values or company culture until they see how clunky and complicated their day-to-day routine has become compared to a few years ago. Productivity and revenue goals have not been met, and every explanation you can think of comes down to the same issue: your team is not operating at the level you originally predicted.
A proven way to avoid this problem is to scale at a speed that ensures every employee understands the business’s values and can envision a fulfilling future for him or herself not far down the line. The result will be growth that is both manageable, sustainable and ultimately worth the wait.
1. Investing In Training
It’s easy to dismiss the idea of investing in the training process because its very definition gives the impression that you are “babying” or “coddling” new hires rather than testing them or making them prove their worth. “I don’t have the time to hold every new employee’s hand,” a business owner might say. This new hire is supposed to have considerable experience with the tools we use every day, so there shouldn’t be much left to teach. Well, your more successful competitors are here to tell you to let go of your ego for the sake of logic. It’s simply not rational to assume that a new hire is going to be able to meet your business’s performance standards or play by your rules if you do not take the time to explain them.
For example, let’s say someone begins working for a boss who is not exactly a natural when it comes to communication. The boss cares deeply for his employees but he speaks in a manner that can be very off-putting, especially for someone who isn’t aware that such language is not a reflection of the boss’s character. It’s safe to say the new hire’s first weeks would be infinitely more productive if he was taught how to interpret the boss’s communication rather than wondering “Am I about to get fired?” after their first conversation.
If you do not dedicate enough time to employee training, a new employee could very well take several years longer than expected to perform to the best of his or her ability. The money the company might have lost during training is negligible at most compared to the money lost from under-performing employees. Younger companies, however, might not be able to meet monthly expenses after sacrificing a few weeks to the recruitment process. One solution to this common dilemma is working capital loans that provide a cushion for the loss of productivity that occurs when new hires are being interviewed and trained. With a working capital loan, you can devote all the time you need to train so that the new employee takes as little time as possible to contribute to your revenue stream.
2. Light At The End Of The Tunnel
Using additional business funding to fill vital roles makes sense because a new employee is not a privilege but an investment in your company. You should be confident that new employees are worth their salary and will only help the company moving forward. Business owners who might be uncertain about either quality should have a set time period for when new hires become profitable or begin to finance themselves. These timelines should be communicated to new hires as well but in the form of the new tasks and responsibilities they will have once a certain amount of time has passed. They need to know that there is a light at the end of the tunnel as well as exactly what they must do to reach it.
A major advantage of working with an alternative business lender is financial predictability or clarity. When you use a small business loan to finance a new hire, you will know how much money you are putting in to training, how long it will take for you to make that money back, how much of it will come from that new employee, etc. It’s almost as if the debt acts as a monitor for your new employee’s progress, and no experienced business owner underestimates the value of this type of information when growth is on the horizon.
Two Companies, One Set Of Values
At first, the pressure of a small business loan seems like it has the potential to make businesses forget their values as they prioritize paying off debt. The business owner becomes so obsessed with increasing productivity that enforcing the core values required for achieving that goal take a back seat. This could be an unfortunate reality for borrowers forced to abide by the ironclad policies of banks but this is 2018, and it is entirely feasible to find a business lender that actually understands and abides by the same core values as your business.
You won’t have to worry about losing sight of your identity if you work with a business lender that has its own identity to maintain. This is why companies that prioritize customer service, individuality or progressive thinking favor United Capital Source over other online lenders that offer speedy approval. We embody the same values that many of our clients have relied upon to succeed, and our innovative business funding programs will allow you to scale your values right alongside your team. You won’t be “selling out” or giving up “control” by working with UCS. We are just another business partner that knows that we won’t succeed unless you do the same.