The startup scene in Singapore is thriving. In 2021, a number of local companies such as Ninja Van, Patsnap and Advance Intelligence Group were minted as tech unicorns. By delivering services or products well enough, companies, such as these, can gain a sizable customer base. When a business successfully meets the challenges during its existence phase, it has proven that it is a business entity that has the ability to survive.
Growth may come with the advantages of economies of scale, increased cost-effectiveness and better profit margins. However, with it also comes a whole set of new challenges. Operations, manpower and systems that used to work just fine, buckle under the weight of a wave of new orders. Hiring the right talent to sustain growth can also be tricky.
How can companies keep their organisation viable, handle growth and cement their market position?
Strategies for sustaining growth
1. Handling revenue
As the company grows, investment in new equipment, technology and talent is necessary. A company sees increased sales and a positive cash flow which should be re-channeled into growing the business. This would be the best time to consider introducing their products to new markets, potentially overseas, or diversify their product lines. Investing efforts require that owners have an adequate risk appetite, as they might need to deal with a high debt-to-equity ratio, where debt is used to fund their business. However, burning through cash too quickly on unnecessary investments can also derail a company’s growth. Being prudent during times where cash is plentiful will ensure you have sufficient funds to tide through difficult periods.
2. Hiring new talent and developing management
During the nascent phase of a company’s growth, a business can rely solely on an owner carrying out a significant number of the core tasks, wearing many hats and making many key decisions. However, as the business scales, it is simply impossible for a business to continue operating in such a way. It is necessary that an owner learns to delegate responsibility in order for the business to be more operationally efficient. Hiring experienced, competent managers to head divisions and strategise alongside the owner is key to handling the inflow of new talent into the company as well as a higher volume of sales.
3. Scaling operations
In the first few years of your start up, you might be flying by the seat of your pants – doing things as you felt was right without documenting any of your procedures. This might have been a viable way of doing things when you’re handling a handful of orders, however when the number of orders increases exponentially, having systems in place is absolutely necessary. Automating manual, time-intensive processes by investing in digital tools or software can help your organisation save time and money in the long run.
4. Inventory management
It is essential that inventory management be handled well so you are able to deliver your products to customers on time. It is also key that you do not stock excessively so as to minimise costs involved with storage or spoilt goods that have been kept too long. Being able to anticipate high sales seasons and low ones can help you adequately prepare by hiring more hands or ordering more raw materials. During the growth phase, this can be particularly tricky. By leveraging predictive data analytics and cloud-based inventory management software, you can accurately forecast demand based on both internal factors, such as past sales, promotions or broader external factors like the economy.
Successfully handle the challenges of growth with Opal
As your organisation marshals its resources and prepares for growth, partnering with a payment solutions provider that covers all your banking needs ensures the growth of your business is properly managed. Opal provides best-in-class financing solutions with its comprehensive banking platform. Our payment products address all your financial-business needs, offering greater convenience and more attractive terms.
Our multi currency account and cross border money transfer services also provide cost-effective solutions when expanding your business internationally. Financing solutions provide the capital a company in its growth stage needs to invest in talent, management software, digital tools and equipment.
Find out how our services can further encourage your company’s growth.