Published on December 27th, 2018 | by Kandace H0
3 Reasons Small Business Logistics Get Shaky during Growth
Watching your small business grow rapidly is exciting, and you may understandably feel an intense sense of pride in your accomplishment. As wonderful as growth can be, many small businesses struggle with logistics during these periods. Such issues may be serious enough at times to impact profitability, productivity, customer service and more. Through a deeper understanding about why logistics may be impacted so substantially, you may be able to develop a strategic plan to mitigate those challenges.
Minimal Infrastructure to Support Growth
Most companies’ logistics are supported by infrastructure as well as by manpower. Therefore, a closer look at how infrastructure may impact growth is critical. Consider that you may need access to a larger warehouse or workspace well before you are ready to move into a new structure or to open a second location. You may also not have enough trucks or other equipment necessary to accommodate that growth.
Some small businesses may need to take out a small business loan or seek funds through crowdfunding in order to pay for additional equipment and space as well as for more labor. Improving processes or using off-site storage spaces may be a cost-effective interim solution to handle rapid growth.
The Lack of an Adequate and Skilled Team
The skills and focus of a hardworking, well-trained team are essential for business growth. However, you may not have the time or energy to expand your team rapidly. Perhaps you do not have funds available currently to pay for additional labor overhead. Consider promoting from within. For example, you may pay for some individuals to take heavy rigid vehicle certification courses so that they can fill different and critical roles in your organization. You can then more easily increase your workforce by hiring less skilled workers who may be easier to find. It is usually best to anticipate the need for additional labor and to begin the hiring process before the need for more manpower is present. By doing so, you can be well-prepared for growth rather than reacting to rapid growth and trying to catch up to demand.
Business logistics can be challenging to manage during times of rapid growth. As a small business, this may be your first experience with growing pains, so you understandably may lack experience and strategies for dealing with these challenges. Spend time analyzing your current operations, and think about how each of these tips may be applied in a beneficial way to your operations. By doing so, you can proactively address challenges and eliminate the stress associated with growing pains.