What is Hyper-Growth?
For a company to be considered hyper-growing , it must absolutely meet 2 conditions: have a turnover of more than 3 million euros and maintain annual growth of 15% or more over a minimum period of 3 years.
Today there are 3 types of companies out of nearly 2000 companies meeting the conditions:
- Start-ups (turnover < €10M) which represent 63.78%
- Scale-ups (turnover between 10 and 50M€) which represent 28.97%
- Medium-sized companies (turnover > €50M), which represent 7.26%
The vast majority of these companies are specialized in the tertiary sector. 14% of them double their annual growth on average.
What challenges do these companies face?
|a) Define and maintain growth levers|
The hyper-growth of a company owes nothing to chance and is often explained by a combination of several factors internal and external to the structure.
These companies have carried out in-depth work and have been able to accurately determine the main development levers. The growth levers are therefore numerous and sometimes require skills that the company does not necessarily master. The arrival of an Interim Manager (whether a CEO , a HRD , a DAF , etc.) can therefore be a beneficial contribution in the development of the growth of a start-up , a scale-up or a an ETI .
|b) Stimulate growth|
It is important for a company to maintain this level by developing new solutions in order to seize any potential new opportunity. The stimulation of growth can lead to new needs in all branches of the company, whether in accounting, in human resources or in logistics for example. All of these needs can be addressed by a Transition manager who can be in charge of harmonizing all the procedures to be upgraded.
|c) Maintaining its level of growth|
To maintain growth, the majority of leaders anticipate changes in their management teams and governance. Indeed, in a situation of hyper-growth, companies evolve very quickly, and the factors that have made the brand successful do the same. As a result, a company’s structure can quickly become unsuitable or insufficiently developed. To deal with this phenomenon, more than half of managers call on external experts to support them in these changes.
What are the risks of hyper-growth?
A company in a situation of hyper-growth can be confronted with serious difficulties because a modification of the activity generates a transformation of the teams, but also a development of services sometimes non-existent before. Moreover, 71% of business leaders in a situation of hyper growth declared that they had already had at least one difficulty to overcome. 57% of them said they had problems with recruitment, often caused by the absence of an HR department within the company. The second problem mentioned (at 37%) is cash management, which in 10% of cases has put companies in very serious financial difficulties. The third most cited problem is internal governance (at 22%) with the most adopted solution being the occasional use of external experts, ahead of the choice of a new type of governance such as expert committees, or even the recruitment of new leaders.