As you begin to see your small business move out of start up mode an into an initial growth spurt, you will need to face the fact that your risks are going to change. Your risk management strategies need to be revised as these new risks and challenges emerge.

• Perhaps the greatest risk the small business owner takes on when they grow is narrowing their focus just on growth. They concentrate solely on growing and producing and increasing revenues. What they tend to ignore, however, is that operational structure needed to support the oncoming growth spurt. Do you have enough employees to handle the growth? Are they properly trained and motivated? Will you need new or additional equipment? How are your distribution channels? Can they handle your new output? If you have that solid system in place for your growth, then you can free yourself to concentrate on that growth while your company has the tools to efficiently and profitably handle it.
• Look at your management systems and the people who comprise it. One of your biggest risk factors will be having managers in place who can not take you to that next level. Evaluate your present managers, as well as yourself. Are you prepared for the shift? If not, you will, inevitably run into the consequences of that. Those are that your services and your products will make a noticeable shift toward a decline in quality. You customers will notice and your growth could be short lived if they make a run for it to your competitors.
• Your risk management policies and strategies must evolve because your growth may likely accelerate beyond what you have initially envisioned. Close planning with your risk and insurance advisor will ensure that your systems are where they need to be. Get the experienced people you need to grow. Find those who have been where you are right now and who have taken things to the next level.
• When Jack Welch ran General Electric, the first thing he did every year was fire the bottom 10% of his workforce. Those who ranked at the bottom 10% in production, and other measurable areas, were released. It kept the company lean and mean and was a great motivational tool. However, keep in mind those who were with you at the beginning. Show them loyalty they have shown you and do everything you can to ensure that they can keep up with the new growth.
• A final risk factor is complacency tending toward arrogance. Don’t think you are too big to fail. Don’t lull yourself into the delusion that someone faster and leaner than you can’t possibly steal everything you have. You think that and they will.

Growth can be an exciting thing but the inherent risks will intensify. Your risk and insurance advisor can help you plan those long term strategies for mitigating these new risks and ensuring that your path to growth is also your path to long term viability and success.