Arnold Electric, Inc. has had it share of growing pains over the years. As it started like many electrical contractors, the business was small making problems small. But as the business grew so did the scope of problems encountered. Following are some areas that a growing small business can expect growing pains.

Finances
Pursuing larger and larger contracts requires bigger resources to complete them. When a business is new, the scope of projects will most likely be small. Initial capital outlay can seem large but the possibilities to cover expenses will be more numerous. When materials and salaries for a project total $10,000, there are a number of possibilities to cover them. When those costs require a $100,000 capital outlay the possibilities diminish greatly and continue to decrease as expenses climb. This also makes timely payment from clients more important, but it will take any client’s company longer to approve payment of $1000,000 than a payment of $1,000. Meanwhile, you have suppliers and salaries requiring payment.

Payroll
Every employer has a steep learning curve when it comes to payroll. Deductions, reporting, and schedule payments will be new. Then there will be a place when payroll with be relatively smooth until growth happens. With more employees will come more experiences. Child support, back taxes, direct deposit or no direct deposits, court ordered garnishments all will be new experiences. Plus, there will be the employee questions on pay amounts and accurate hours. Also, expect employees to ask for an advance on occasion (even if you have firm policy otherwise). Outsourcing payroll is an option, but that comes with its own learning curve also.

Compliance
Something not often discussed, but as a business grows it will run into issues of regulatory compliance. There are numerous labor laws and as the number of employees increase, what few exemptions there are they will cease. Meaning the business will be required to be in compliance from all sort of regulatory bodies. Plus, employees will bring about issues which require new polices in all types of areas- disability, affirmative action, drug policy, sexual harassment, hiring policy, termination policy, domestic violence. Then there is OSHA with first aid kits and fire extinguishers required per employee or by square footage. These policy and compliance issues are seemingly endless, but must be addressed.

The seemingly simplicity of the early days of a small business will be longed for as one grows. Still, growing a business is a laudable goal and even with the pain.