Dealing with rapid growth

In the lead up to the 2005 WA Business News 40under40 Awards, a survey of past winners has found that dealing with growth is the number one issue for many. Marsha Jacobs reports on how they have coped with the challenge.

Almost all past 40under40 winners nominate growth within their businesses as the biggest challenge they have faced since their award. It’s a theme common across all types of business and among some of the State’s most experienced operators.

Many of those surveyed said among the issues when dealing with growth was finding quality employees to retain their original business philosophy as their business expanded.

First Amongst Equals winner from 2003, Commtech Wireless CEO Nathan Buzza, said his business had grown from 24 to 60 staff since he won the award, and managing that growth had been his biggest challenge.

“The company has matured from a small business to a mid-sized electronics manufacturer, requiring the introduction of stronger internal communications processed and focus on quality assurance,” Mr Buzza said.

“As we make the transition from a small mid-sized business to a large business, we are moving into unchartered territory – the biggest challenge is not knowing what our next challenge is going to be.”

Clientforce managing director Mark da Silva, a 40under40 winner in 2003, said his company had doubled in staff and turnover in the past 12 to18 months. Maintaining a company that was continuing to grow had proven to be the biggest challenge he had faced.

“Training within the office has taken on a whole new level – integration with technology has been improved as a result and taken many arduous processes out of the business,” Mr da Silva said.

2004 winner and Lease Equity director, Jim Tsagalis, said continuing to match growth within his business with quality employees was his top priority and most significant challenge.

“Our business is only as good as the people we can attract,” Mr Tsagalis said.

“We have always had the ideal of attracting the ‘best of the best’ and those who want to improve both their and our clients’ assets and wellbeing.

“Choosing the right projects to be involved with to which we can add the most value is also an issue.”

Must Winebar general manager and executive chef Russel Blaikie, a 40under40 winner in 2003, said handling strong growth of his business while providing a unique wine and food experience with service and ambience was a major hurdle.

“My biggest issue at the moment is this transitional stage I am in with the business,” Mr Blaikie said in the survey.

“This means the business has become unmanageable at the size it is currently so I’ve had to employ help, but it’s not quite at the stage that I can afford them.

“I need a larger warehouse if I wish to expand, but can’t quite afford that either, so I’m currently in the process of taking on investors so I can move through this stage a little easier.”