Chiefly Consultants helps fast-growing finance businesses identify their challenges, implement the right solutions, and monitor outcomes for a better future.Key takeaways:
- Finance companies grow quickly due to factors like new digital technology and mergers and acquisitions
- Prioritizing cash flow management and hiring a Chief of Staff are a couple of ways to stay on top of hyper-accelerated growth
- Chiefs of Staff from Chiefly Consultants help finance companies by:
- Identifying their biggest challenges
- Putting the right solutions in place
- Monitoring results over time
Why do finance companies grow quickly?One reason that finance businesses are known for fast growth is that they leverage the power of compounding through interest rates. This means that the returns on their investments accumulate over time. As a result, their profits grow exponentially, leading to significant business growth in a short period. Finance companies can also attract large amounts of capital from investors due to the perception of low risk, high returns, and stability in the industry. This influx of capital allows them to finance expansion plans and make strategic investments to fuel growth. The finance industry is also becoming increasingly digitized with the development of online banking, cryptocurrency, and mobile payment solutions, leading to lower overhead costs and increased efficiency. Finance companies that adopt these technologies can grow quickly when compared to businesses that don’t. In addition, finance companies can expand their business quickly through mergers and acquisitions. By acquiring or merging with other companies, finance organizations can enter new markets, expand their customer base, and increase profitability.
How finance businesses can get on top of hyper-accelerated growthIf you run a financial services business, you may be overwhelmed when you start to grow quickly. What can you do to get on top of it? Follow these strategies to reduce some of the stress on the company and keep growing:
- Prioritize cash flow management: Cash flow is one of the biggest problems for fast-growing businesses. You may think you have plenty of cash coming in to cover your expenses, but when those expenses start increasing, and schedules shift for when you’ll get paid or have to pay bills, cash flow can become a problem. Create regular cash flow forecasts and plan for unexpected costs along the way.
- Consider all financing options: Remember that you have options for financing your fast-growing business. Depending on investors is a great option, so you don’t have to accumulate more debt, but remember that they’ll have a share in the company. You can also consider business loans, which are especially helpful when you need to fund a big project that will pay off.
- Stay on top of staffing: You’ll likely have to add more people to your payroll when growing quickly. Be careful not to over-burden the staff you already have, and pay close attention when it’s time to get some additional help. You could even consider hiring contract or temporary help when you need it.
- Hire a Chief of Staff: Many fast-growing companies bring in an expert to help with operations and strategy. A Chief of Staff is a good idea when you need a professional to help you make business decisions, stay on top of processes and staff, and oversee changes that growth brings to the company. A Chief of Staff enables you to avoid trying to do everything yourself.