How to transform a startup into a small business

Content Type: Article

Consider these tips for taking your business from a lightly organized startup to a mature, sustainable firm.

Growing a business comes with challenges. You may encounter lagging staff morale or rapid turnover. You may need to scale to more robust human resources, technology or sales operations. And if it all feels a little overwhelming, that’s okay.

“Knowing your limits as a budding entrepreneur is part of stable business growth,” says Rokki A. Coleman, small business strategy manager at Regions Bank. “Just create realistic, achievable goals. When you stick to what you do best, you can find and guide the right people to help you reach your goals.”

Here’s how to get started on transforming your workplace from an exciting but less-than-efficient startup to a stable small business.

Nurture a positive workplace culture

“Promoting a stable workplace culture means promoting transparency and communication,” says Coleman. “You may think: ‘I’m a great listener and people like me.’ But a willing ear alone isn’t enough to build a culture that keeps your staff productive and contented.”

Transparent management and inter-staff communications build trust and strong bonds. Those bonds can create the same kind of fun, positive work experience you remember from your earliest startup days. To make that happen, Coleman suggests establishing a culture committee. Use the group’s feedback to create more meaningful company policies that address short-term needs and long-term goals. “These groups encourage your people to be proactive instead of reactive in voicing their ideas and concerns,” he adds.

Be sure to also:
- Create clear pathways to leadership for employees.
- Support individual and collective innovation and creativity.
- Reward successes both large and small.
- Foster a healthy sense of work-life balance.
Investing time and resources into your workplace culture gives employees reasons to stay with you for the long term.
Invest in and mentor new talent

When you started your venture, you may have recruited seasoned professionals to tap their industry wisdom. But now you can create your own bench of superstars. When you mentor younger employees, you’re sharing institutional knowledge they can pass along to less-experienced team members—and so on.

As you vet job candidates, particularly younger applicants, ask yourself: Do they have exceptional interpersonal skills? Do they have the raw skill and temperament to solve a specific team problem and become a future leader? Building a new crop of complementary personalities—not just collecting overachievers—fosters a fun and productive workplace.
Be ready to upgrade roles and processes

You may have a great bookkeeper. “But then you need to know what’s bogging down your cash flow, how to get better pricing from suppliers and the fastest ways to cull valuable customer purchasing data,” says Coleman. The answer could be hiring (or promoting) a controller or financial manager who brings profit-building best practices into your operation.

You may also consider farming out tasks and responsibilities to fulfill your needs. “Outsourced services and tools can act as guardrails for scale and establish sustainable processes,” says Coleman. Payroll, HR services and payment systems can help you scale quickly, while also bolstering other areas of the business, like sales and marketing.
Keep your capital options open

When funds meet normal operating demands, don’t forget the rainy days: “A two-year-old business suddenly realizes it needs a warehouse or a storage facility,” says Coleman. “Now what’s the means to acquire it?”

When you maintain solid financial records, pay your bills on time and don’t overextend your credit, you’re setting up your business for getting a bank loan or other form of credit when you need it.
Remember that mentors have mentors, too

You may think you have most of the answers. You are, after all, the boss, right? “Still, many successful small business leaders I’ve worked with have mentors they turn to for advice and guidance, whether it’s a retired business owner, a lawyer or their banker,” says Coleman.

SCORE and the SBA offer formal mentorship services. More informally, local groups like the Chamber of Commerce can help you find great entrepreneurial thinkers to help you turn your scrappy startup into a smooth-running machine.

Your efforts to create a stable and mature small business will make your organization a more efficient, fun and (hopefully) profitable place of employment. The trick? Doing it without losing sight of the positive cultural elements already making your business a great place to work.