Although high growth within a start-up company is a positive quality, it creates new levels of complexity in the areas of staffing, structure, process, measurement, and communication. In the past few years we have seen many unicorn companies created and supported with multiple rounds of financing, leading us into an era that awards growth over cash flow. So, what are the top priorities to consider for these companies to flourish? Our experts in New York recently offered some helpful suggestions at The NYC CFO Leadership Council’s February program, Managing High Growth.
Our speakers were:
Gearing their advice to an audience composed mainly of leaders from private and start-up venture backed companies, here’s what they told us:
- Establish and formalize company protocols and documentations early on.
- Know when you should invest in systems.
- Evaluate how well your systems and controls handle the increased volume of work and, when needed, outsource.
- Utilize KPIs as measurements of your financial performance.
- Consider your stock option granting processes
- Be cognizant of the need for a 409A.
- Continuously build upon and direct your company culture and employee profile.
- Think about your current and future office space needs and realize when it is time for a company move.
- Protect all of your trademarks, patents, and copyrights.
- Establish either a B2C or a B2B.
- Look to the future and always be innovative, but also know when it is time to stop and re-evaluate your organization.