Startup culture in Melbourne is in full-swing, and it’s a cut-throat market. Competition is steep, and chances are there are a lot of other startups out there trying to do the same thing as your business. The temptation is to start expanding like crazy as soon as you taste your first success, but that can lead growing pains that can prove harmful or even fatal to small businesses.

Problems from Rapid Growth

A number of issues can arise from expanding too rapidly. Any business consultant would tell you these are the most common issues to avoid when growing a startup:

  1. Customer dissatisfaction

Once startups begin to take on new projects at a rapid pace, time and resources can be stretched thin and quality can decline.

Projects run behind schedule and clients lose the personalised service. A lack of attention to clients leads to dissatisfaction with products and services. Because competition is everywhere, your clients have plenty of other people to turn to.

  1. Staffing issues

With an expanding client base and workload, employees can become overworked. Overwhelmed staff are not able to do their best work and provide the quality of service customers expect.

When the workload becomes too much for the staff, the logical next step seems to be hiring a bunch of new people. Onboarding is a demanding process, and setting up and training new employees takes away time and energy from existing staff. Offices can become crowded, and budgets are stretched thin.

  1. Lack of Funds

Putting new staff on payroll and moving offices can be a big strain on the budget. Running out of funds is a scary possibility for any business owner, and taking on too much can lead to serious cash flow problems. If the owner has invested a lot of their own money or taken out business loans, this can be disastrous both personally and professionally.


While rapid expansion can cause these problems, growth isn’t a bad thing. It’s a sign that your business is doing something right. If you figure out what makes your business successful and focus on continuing to do those things, you will be able to sustain growth.

  1. Quality service

Focus on customer satisfaction and giving your clients personalised and high-quality service. That might mean not taking on as many new clients as possible and instead focusing on building a reputation for excellent service and results.

  1. Employee satisfaction

Make sure your employees are able to handle the workload. You are a team and you’re in this together. Focus on communicating effectively and collaborating, and high-quality results will continue.

Provide new and existing employees with the training necessary to effectively do their jobs, and don’t go on an unsustainable hiring spree. Have procedures and policies in place to guide new staff and establish and an office culture of organised efficiency.

  1. See a business consultant

When it comes to planning a sustainable growth strategy, meeting with a business consultant is one of the best investments a startup can make. Trained professionals can help a business with budgeting, marketing strategy, branding and websites.

Avoid the common mistakes of expanding startups by talking to a business consultant. Here at TR Consulting, we are happy to help small businesses plan sustainable growth and give them strategies to succeed. Contact us today for more information or to set up a consult.

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