Business is growing. Products are flying off the shelf, your reach is expanding, your market share is becoming more and more dominant. You find yourself having to hire more people and shift the ones you already have into leadership and management roles. Things are happening so fast that you can barely keep up.
Then your accountant comes to you and shows you how you’re losing money. How can this be? You have more customers buying more stuff from you than you ever have before. Your competitors’ customers are running to you, and you’re getting pressure to expand beyond your regional market. How can there be a net loss?
The example above demonstrates a common scenario for small and midsized businesses in the growth phase. The conditions are a byproduct of poor (or simply the lack of) planning and strategic formulation. Growth for the sake of growth, or what we call “reactionary scaling” can be ultimately toxic for your business. I’m going to outline some common mistakes we see (especially with regard to a brand’s digital marketing strategy), and how to avoid them.