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How to Manage Rapid Business Growth Periods

19th June 2025

Rapid business growth can be exciting for a business owner. However, owners of rapidly expanding companies can often struggle with how to manage business growth.

While there is no better feeling for business leaders than seeing their company grow, unexpected and rapid growth brings its own set of pain points.

If your business is experiencing rapid growth, read on. Here are our tips to manage that growth, build strong financials, maintain a competitive advantage, keep your people and customers happy, and attract new customers.

 

What defines rapid business growth?

Rapid business growth is often defined as 20% or more year-on-year growth.

Unexpected growth may occur after a significant event. For example, a product online has gone viral or has been picked up by a social influencer.

Often, rapid growth can also come when a company secures significant investment from areas such as venture capitalists or private equity. Technology breakthroughs can also lead to rapid growth in a company.

 

The importance of managing rapid business growth

Fast growth in a company is not always good news. If growth isn’t managed carefully, it can be harmful to the company and the brand in the long term.

There can be a fine line between healthy fast growth and potentially damaging growth. Success lies in how you manage rapid business growth.

If you want the business to continue thriving and growing in the long term, then you’ll need a solid growth strategy behind you.

 

Build a comprehensive business growth strategy

During the frenzied period of rapid growth, strategic planning can often take a back seat.

Assuming that your original business strategy will carry through the period and beyond is a mistake. The things that got you to this point and made you successful may not be workable or sustainable as your company continues to grow.

Without stepping back, looking at the bigger picture, and revisiting your strategy, you may risk a short-term focus, with decisions prioritising immediate gains over long-term implications and sustainable growth.

Without building a comprehensive business growth strategy, you and your company will be unprepared for the challenges that may lie ahead as the business scales. This in itself could risk the future of the business.

 

Look after your people and recruit for growth

A significant risk with fast growth is stretching your people and resources to their limits. To achieve consistency, you need to retain key personnel by rewarding them for their loyalty and hard work, communicate effectively with them, and build a culture that is prepared for rapid change.

Failure to look after and communicate with your people during a period of rapid growth can impact quality, morale, and ultimately, customer satisfaction.

If there is a need to recruit quickly, it’s tempting to set the bar at a lower level for the people you need to recruit. Building strategic partnerships with recruiters, freelancers or outsourcing companies could help you through a really busy period and to recruit the right people in the future.

 

Create a financial and cash management strategy

A robust financial and cash management strategy is crucial for high-growth companies. Management reporting is crucial in rapidly growing companies.

Here are some of the key financial areas that you need to manage carefully during periods of rapid growth.

 

Profit instability

As your business expands, you may need to invest heavily in people, stock, and infrastructure. If revenue then drops, you are at risk of unstable profits.

 

Managing cashflow

As your business grows, you may see your profits grow, but often so do your expenses. Having to buy large amounts of stock or employing new people to meet future demand can all put a strain on cashflow. This is often a problem with fast-growth companies.

It’s easy to make hasty decisions when facing short-term cashflow problems. To offset this, consider the following areas to focus on and create sustainable cash flow.

  • Streamline billing, payments and collections.
  • Optimise and maintain your pricing model.
  • Review expenses and adjust.
  • Create regular cashflow forecasts and constantly review and update them.

 

 Manage working capital

Many profitable businesses can struggle or even go out of business due to an inability to meet short-term financial obligations, often resulting from a lack of working capital.

Look beyond just revenue before you start taking on new staff, buying new machinery, or expanding to larger premises. Having an effective system for managing working capital can help you not only cover your financial obligations but also continue to grow and invest.

Strategies to improve working capital include:

  • Reviewing and adjusting payment and collection terms.
  • Optimising inventory ratios.
  • Monitoring key performance indicators (KPIs).

 

Strengthen financial controls

Strong financial controls are critical in the business. These controls will ensure accurate financial reporting, prevent fraud, and help you identify issues early. Your business should have strong financial controls in:

  • Budgeting and forecasting.
  • Cash flow management.
  • Debt and investment management.
  • Legal and regulatory compliance.
  • Financial audits.

 

Funding

You may need funding to continue financing your company’s growth strategy. You may want to secure funds from various sources. Some funding options are:

  • Equity funding.
  • Debt funding.
  • Grants.
  • Bank loans.
  • Crowdfunding.
  • SEIS / EIS.

 

Tax planning

As your business grows, effective tax planning can optimise your financial position. You should work with your accountant to consider capital allowances such as the Annual Investment Allowance (AIA), 100% full expensing allowances and writing down allowances.

Fast-growing companies should also consider R&D tax credits, patent box, and employee share option schemes.

Undertaking strategic tax planning throughout your company’s growth is crucial to maximising tax reliefs, remaining compliant and increasing profits.

 

Company restructuring

Almost every successful business will go through a restructure at some stage. Restructuring is about so much more than just reorganisation; it’s about making your business fit for the future. Whether you’re responding to financial changes, planning for future growth, or adapting to a merger or acquisition, company restructures are often a strategic move toward a stronger, more efficient business.

Reorganising your company structure as it grows can minimise risk in the business, protect assets and create some tax advantages.

 

Analyse and change

Business leaders need to step back and spend time on strategic financial planning. Work closely with your accountant to regularly budget, analyse, and adjust based on your financial data.

 

Improving technology

Automation tools like CRM can drive efficiency in companies and help employees to complete tasks faster and more accurately.

However, growing companies can often end up with a complex tech stack, so going back to basics by simplifying and standardising your tech stack may also yield results.

When investing in IT infrastructure and technology, it is advisable to invest in scalable, agile IT solutions that can adapt to future changes. Creating a unified IT infrastructure will allow data to flow smoothly across operations within the business.

 

Prioritise existing customers

Fast growth can often compromise the customer experience as resources are stretched, and you are busy dealing with new business. As you grow, you may begin to lack the capacity to deliver at the same level that your customers have come to expect. This can result in the loss of valuable existing customers.

Ensure that you continue to invest in your current customers, rather than just spending time looking for new potential customers. Invest in scalable support systems, customer feedback programmes, loyalty programmes and staff training.

 

Create robust supply agreements

What happens if you can’t get hold of the right raw materials or supplies for your business during a period of rapid growth?

Having robust supplier agreements in place with key suppliers in advance of rapid business growth can help overcome supply challenges in the foreseeable future. Discuss priority agreements, delivery terms, and pricing discounts for higher-volume orders.

 

How Edwards Accountants support businesses through rapid growth periods 

Knowing how to manage business growth can be challenging for any business owner, but when rapid expansion occurs, these challenges and working to overcome them become even more crucial.

Rapid business growth can come with huge opportunities but can also be fraught with problems if not managed carefully, and business leaders don’t take time to step back and plan strategically for the future.

Contact Edwards Accountants, to learn how we can help you to manage many of the financial challenges encountered when your business grows rapidly.