ONE of the most enduring ironies of the business world is the way in which growth can kill your business. Many businesses go bust at the time when they are achieving record levels of sales.

Business owner Zol Ka Sali-Duma (pictured above) knows all about the dangers of growth. About 18 months ago, she decided that it was time to expand her successful events management and corporate gifts business.

She miscalculated the timing of the growth and her business took a huge knock as a result. Fortunately she managed to recover and drew some powerful lessons from the experience. 

“Sometimes you get a second chance,” says Ka Sali-Duma, who is about to expand her business, By Design Marketing Group, again.But this time she is doing things very differently. Here    she shares some of the lessons learnt.

Ensure sustainable growth

“We thought we needed to grow because we were very busy. A lot of work was coming in,” explains Ka Sali-Duma.

“But most of it was coming from one contract. We were so focused on doing the work for that one client that we were not sourcing new business. When the contract came to an end, the cashflow dried up.”

Take up more long-term contracts

This time, Ka Sali-Duma has a long-term contract for two years. Also, part of her growth strategy now includes actively sourcing new business.

"The new people I am appointing will not only be concentrating on current work, but also on sourcing new work. Growth needs money,” says Ka Sali-Duma.

“We opened a new branch and were trying to finance that branch as well as the current branch.” 

Many business owners forget that there is a lag between the time they invest money in the new business in the form of stock, wages, running costs, and the time that they are paid for the new products or services they delivered. The business needs money to see it through this time-lag.

“First make your base strong, urges Ka Sali-Duma, and set aside money to focus on the growth.”

Keep a tight check on quality and delivery

“I took on all new business. But it was too much, I sometimes could not deliver and lost face,” explains Ka Sali-Duma.

“It was damaging. A business cannot survive on continually sourcing new business, you must leverage your current clientbase, by building in repeat business.”

Recruit the right people

Ka Sali-Duma sys she used to hire people who were her friends or family because they needed work, but she has realised the need to hire the right people for the job and now employs professional recruiters when it comes to finding suitable staff.

Contact Ka Sali-Duma on 011 781 5746.