Keep the cash flow positive. Tone down your growth to keep too much cash from leaving.
Don't give up control. You may have to give up some equity, but never give away controlling interest in your business.
Track cash flow before profits. Rather than using traditional monthly P&L statements to monitor your company's financial performance, use a 13-week rolling cash flow report. Forget about profits and watch cash flow like a hawk.
Don't seek the advice of consultants. Most are trained to work with larger, more mature organizations. Use peer-to-peer CEO groups and benefit from those who have “been there and done that.”  These peer-to-peer groups are comprised of business owners who help each other solve pressing business issues.
Avoid premature delegation. Do not delegate any roles or responsibilities until you know exactly what you're delegating.
As a company grows it establishes ongoing sales and a predictable income. Cash flow problems become a thing of the past, and the company no longer has to struggle to survive. Now that it has some money to work with, the company begins chasing one opportunity after the other and commonly suffers from these problems:
Lack of controls. As the growth rate begins to climb, the company fails to shore up that growth with the proper infrastructure. Lacking any internal systems, budgets, policies or procedures, the organization becomes an accident waiting to happen.
Midas Touch syndrome. The founder starts to get an inflated sense of his or her own worth. Fueled by hubris, arrogance and ego, the founder may venture into new products or businesses that have nothing to do with the core competencies.
Lack of resources. As the company starts to grow in all directions, the founder gets spread alarmingly thin and leaps into areas he or she knows nothing about. Things begin to fall through the cracks.
"More is better" syndrome. A myopic focus on sales causes problems in other areas of the organization and to the balance sheet.
Wakeup call. Every company in this growth phase eventually makes a major mistake, such as taking a huge financial hit from an unprofitable acquisition or losing a major customer. If the company is lucky, the disaster serves as a wakeup call. If not, the founder can lose overnight what may have taken years to create.
Tips on getting through the second growth period:
Stay focused (as much as possible). Before adding any new product, acquiring another line of businesses or plunging ahead with any new venture, ask yourself, "Why am I doing this? Does this really fit our business? Do we have the core competence, knowledge and skills to take this on?"
Don't spread yourself too thin. Entrepreneurs love to work hard and make things happen, but they can only do so much. Ask yourself, "Do I really need to take on this new role or responsibility? Does this truly add value to the organization or will it distract me from more important duties?"
Keep your ego in check. Just because you have had some success with your small company, don't automatically assume that you now have the magic touch.
As you grow you will need to hire employees. You can download a free best practices report on hiring the right people the first time at http://www.vistage.com/staffing.

greg@Gpalmerandassociates.com
949 232 7101

G Palmer