Coping with Sudden Success | How-to Guides for running your business from Business.com

You know the old saw: Be careful what you wish for. Entrepreneurs who have had unexpected success – in the form of extraordinarily large orders or a slew of new clients – often can’t handle unplanned growth. The following guide will help you:

1. Access much-needed capital.
2. Increase your distribution and fulfillment capabilities.
3. Get outside help and grow your staff on the fly.
4. Keep your stress level under control.

Here’s how to deal with the troubles – financial, operational, and emotional – that come with sudden success, and how to maximize the opportunities coming your way.

Action Steps
The best contacts and resources to help you get it done

Improve your cash flow

While every entrepreneur is thrilled to get the proverbial “big break,” sudden growth can severely tax a small company’s cash flow, given the need to quickly grow inventory, ramp up production, and hire staff. Short of getting an investor, you can solve your need for more cash by getting a credit line or using a factoring company to advance cash on your receivables (for a fee), or both. Naturally, being vigilant about your cash flow status will help you forestall problems as well: if you don’t already, you should start generating a cash flow report.

I recommend: For help tracking your cash flow, download a cash flow budget worksheet template. To determine how large a credit line you need, plug your numbers into the Working Capital Calculator. Then take those numbers and apply for a credit line at Wells Fargo, Bank of America, Washington Mutual, Wachovia, or Key Bank, some of which will allow you to apply online. For strictly web-based banking, try NetBank. Check out factoring at AdvanceMe, Capital Solutions, or Wells Fargo's Business Credit.

Ramp up distribution and fulfillment

Used to packing and shipping everything yourself? Several services will take on some of the logistics for you. But if you’re really growing fast, you may find it more cost-effective (not to mention sanity-saving) to outsource packing and shipping to a fulfillment house.

I recommend: For third-party logistics, turn to the small business services at DHL, UPS or FedEx. You can arrange for shipments and pickups, track deliveries, estimate freight costs and more. For extra warehouse space or warehouse management software, search Thomas Register’s warehouse services directory. Need a more comprehensive solution? Fulfillment houses like Webgistix or The Fulfillment House will take over much of the burden of storing and shipping your products.

Grow your labor pool

If you’re working day and night, you need relief – in the form of good help. If you’re short of cash, look for a skilled intern. For short-term needs, seek temporary help. For specialized skills on a retainer or a project basis, turn to independent contractors like bookkeepers, programmers, and freelance writers.

I recommend: Post a job for free on InternJobs.com or check out InternSearch.com, InternWeb.com, PaidInterns.com and Rising Star Internships. For temp help, search a national directory of staffing agencies at American Staffing Association's (ASA) member database. For independent contractors, visit BookkeepingHelp.com; Rentacoder (programmers); Guru.com, Elance.com (a variety of consultants); and MediaBistro (writers and editors). If you hire family members, comply with the tax laws by visiting IRS: Family Help.

Keep track of your customers and treat them well

Now may be the time for you to shift from the customer database you've been keeping on Excel or Access to customer relationship management (CRM) software, which will help you keep your growing list of customers satisfied.

I recommend: Search for a product that fits your needs at CRMBuyer.

Breathe

You know what the experts say – good stress and bad stress are the same – they’re both stress. Adrenaline affects body and mind the same way, whether you’re riding a roller coaster or broken down on the side of the highway.

I recommend: If success is making you anxious, try The Stress Doc's formula for natural SPEED — sleep, priorities, empathy, exercise and diet. For help prioritizing those multiple tasks, try a free trial of Checklist time management software or a free activity log from Mind Tools.

Tips & Tactics
Helpful advice for making the most of this Guide

Seek outside help as soon as you think you might need it. Use an intern if cash flow is tight.
Ask suppliers for good credit terms. If you’re a regular customer, some suppliers may be willing to extend 60- or 90-day deadlines to you.
Watch the bottom line. It can be tempting to say yes to every customer who comes your way, but doing so may increase your top line but hurt your profits.

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