But in most cases, managers must discipline themselves to mull the implications of media coverage on their businesses. In other words, will an appearance in the media result in a workload that's tests the company's capacity to meet it?

Similarly, they might consider ways to lure only the most desirable customers. At Jubilee, for instance, Doyle at one point stopped taking direct personal orders and instead devoted all his resources to fulfilling existing catalog orders. He also told catalog customers he couldn't accommodate any more orders. That's a perfectly acceptable response to clients, says Clarke. It's also much better than failing to deliver on obligations.

Advertising on the Internet to a desired audience is one way companies can manage the quality of contacts they get, notes Clarke. Search-engine optimization is another: For example, using keywords like "premium" or "high-end" can help exclude unprofitable contacts.

Joining associations and networking can also help small-business executives find profitable customers. Carline Ferailleur, owner of Atlanta-based CF Professional Translations, a translation and interpreting service, for example is a member of the National Association of Women Business Owners. At one meeting, she learned that the Georgia Women in Business Council certifies woman-owned businesses.

Once such businesses are certified via a rigorous review process, they're entered into a database from which members of a consortium of major companies like Delta Airlines look for service providers. Ferailleur, an African-American, is planning to apply for a similar business certification for minority business owners so she can bid for local government contracts. Such connections enable Ferailleur to avoid wasting valuable time on customer relationships that don't pay off.

Strapped for Cash
Besides labor shortages and excessive demand, inopportune growth can also throttle needed cash flow. Outlays for growth-fueled expenses can cause companies to be short on dollars to pay for hiring, travel, administration, and other costs of getting the work done.

Such a situation can be especially stressful for businesses less than two years old. That's because most banks have the policy that companies must have operated for at least two years in order to qualify for a business loan. Such was the case with Ferailleur and her one-woman translation business, which just turned two last month.

Indeed, requests for Ferailleur's services were becoming overwhelming. At the same time, she still didn't have enough income to hire administrative help. So she did work herself, spending at least 20 hours a week on accounting and paperwork. That, she notes, was time she could have been spending on cultivating new business that might, in turn, pay for an administrative hire.

In such cases, the Small Business Administration offers loans for entrepreneurs. Last year, Ferailleur applied for and received a loan through the SBA's MicroLoan program, which makes loans of up to $35,000 through local, non-profit intermediary lenders. (The average loan, according to the SBA website, is $10,500.) She used her $25,000 loan for marketing brochures, advertising, and memberships with organizations like the local Chamber of Commerce and the Better Business Bureau — all of which fueled her company's growth through increased visibility. She also hired Ground Floor Finance's Clarke for business consulting services.

When her business reached its two-year anniversary in November this year, she qualified for a $24,000 line of credit from Washington Mutual, which also extended her a business credit card with a $5,000 limit. She can now pay for subcontractors without having to wait for clients' payments. She can also spend on business travel and other expenses without being strapped until reimbursement from clients.

Credit, therefore, has made life much easier for Ferailleur. Before that, however, the cost of growth had been steep. "As demand for my services were greater, the need to finance the growth became urgent," she recalls. "Everything that came in went right back out."

• « previous
• 1
• 2