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Hiccups and Start-Ups: Causes & Cures

I sometimes get the hiccups when I eat too much too fast, drink a hot beverage and then switch to a cold beverage too quickly, or even when I get super excited. While hiccups are normal and occur in everyone, if prolonged they can lead to major problems, including death! (Hiccups are the result of diaphragm spasms, which in severe cases can lead to suffocation.)

Similarly, I’ve experienced serious cases of business hiccups when growth occurs too fast, or tactics change too quickly, or when excitement substitutes for facts. While familiar and homespun remedies like breathing into a paper bag or asking someone to scare you may ease physical hiccups, hiccups in a young business require sure-fire cures.

Evidence of Professional Hiccups

Significant growth occurring too quickly can lead to a range of problems, some of which may have lasting effects on the health of your business. One of the most obvious challenges is a deterioration of customer service as growth outpaces your ability to deliver products and services.

For example, unanticipated revenue growth typically leads to backorders. Customers begin to suffer long wait times to the call center and poor morale which can lead to lost sales and retreating consumers. Counter-intuitive as it may seem, rapid growth can hit profitability and leave employees frustrated as they scramble to get the supply chain to respond at the speed of light.

While most CEOs and marketers will tell you they would love be challenged by sales and sponsoring exceeding forecasts, managing through the obstacles associated with growth requires timely and clear communications with all stakeholders.

It’s especially important to direct a laser focus on the maintenance of customer relationships:

  • Use multiple communication channels including personal phone calls, live chats, social media outlets, and “thank you for waiting” notes. These tokens of appreciation express the company’s gratitude for increases in sales.
  • Be as clear as possible with the sales force and consumers regarding fulfillment dates.
  • Use the waiting period between potential disappointment and delivery to increase your brand’s equity. (This is the time to exceed expectations!)
  • Provide free gift-wrapping, waive shipping charges, add points to the loyalty program, or give a super-sized discount on future purchases.

Hiccups also occur when strategies and tactics change too quickly. In early stages, companies can morph too quickly away from the original vision, especially when early adopters don’t respond as anticipated. Don’t throw the proverbial baby out with the bathwater. Stick to the mantra of start-ups—learn and adapt, learn and adapt.

Resist the urge to learn and toss

Keep improving, tweaking, and developing the original concept. Switching gears completely or too abruptly can confuse supporters and believers, and may lead to doubt and insecurity.

Naïve exuberance can lead to irritating hiccups

Just when everything seems to be going right—sales are growing according to plan, inventory is arriving just in time, and productivity is increasing—a case of the hiccups can emerge out of nowhere. It is only upon reflection that you realize the warnings signs were there all along.

A key indicator may involve over-delivering sales that mask underlying problems. Lead generation and conversion may be slowing down, performance of new sellers may slip, or repeat purchases start to decline. Make sure you are facing all the facts and resist the urge to overlook negatives or potential warning signs.

The good news: though annoying, hiccups can be short-lived

By remaining proactive and engaging simple principles to ensure precautionary measures are in place as you move through your business lifecycle, hiccups can be mitigated. With the implementation of appropriate strategies, pre-emptive practices and positive attitudes, you can steer your business away from crisis or the need for serious intervention.

This is the first in a 3-part series on challenges that companies face during periods of transition begining with Part I: Start-ups, followed by Part II: Re-positionings and Part III: Turnarounds.

Prior to joining DSXgroup as a Corporate Management Consultant, Betty Palm served as president of Tupperware Brands, Executive Vice President of Pampered Chef, Vice President of Longaberger, and has led in the development of direct selling divisions for companies such as Mars, Inc., and Jones Apparel Group. At DSXgroup—which partners with private equity firms, technology solutions providers, direct selling and multi-channel corporations—Betty leads DSXgroup’s direct selling practice in brand building and product development, start-up business plan development and execution management, creating sales, leadership and motivation programs, and ongoing advisory board support. Betty Palm may be reached through her website http://dsxgroup.com or directly at: bpalm@dsxgroup.com

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