By Terrence Ryan, CEO LaunchPoint
Just received a round of funding? Have a plan to manage the rapid transition an influx of cash brings.
Start-ups apply for funding to help with operational support, sales and marketing, product development, and to scale their businesses. While a critical amount of time is spent during the funding phase, once you’ve gotten the good news that you have successfully completed a capital raise, you need to be ready for rapid acceleration. Realize it took a whole lot of work to get to where you are; make sure you are ready to handle the challenges that come with expansion. Below are ten keys to managing hyper growth:
Ten Keys to Managing Growth
- Think beyond yourself – realize what you are trying to accomplish may be bigger than you.
- Surround yourselves with people who can do the job – getting the right person in early is a huge leveraging point.
- Recognize your leadership team is critical to driving the direction of the company. Empower them to act.
- Focus on the bounds of risk – aim for flexibility with some stakes in the ground. Remain flexible but focused.
- Decide on three stretch goals and be pliable and moldable in early stages, but with direction and clarity.
- Make a plan to protect quality during rapid growth including products and people. Hire the best talent you can find—those that think strategically but can execute.
- Plan a 3-5 year build. Nail the market strategy, scale the business, put the right pieces in place, and then make key decisions at a checkpoint in 3 to 5 years.
- Focus on solutions for customers, not infrastructure.
- Remain flexible and shift priorities as needed to respond to the market.
- Focus on over-serving clients— “serve clients with religious fervor”
In 2008 I co-founded LaunchPoint, a provider of payment integrity and risk management solutions, software, and services for healthcare organizations. The company has enjoyed steady growth and when we were ready to scale the business, we successfully raised $22.5 MM in funding from Carrick Capital Partners. We’ve used the investment to fund new product development, expand sales and marketing, and enhance the client experience at LaunchPoint and our two divisions, Discovery Health Partners and Ajilitee.
LaunchPoint was recently named the 4th fastest-growing company on the 2016 Crain’s Chicago Business Fast 50 list, marked by our impressive five-year growth of nearly 4,700%. Our success can be attributed to our ability to constantly evolve product offerings, retain talent, and grow our client base, which now comprises 46 health plans, including three of the five largest plans in the U.S.
Our solutions help our clients address one of the most pressing issues facing health plans today: how to protect revenue and eliminate waste and inefficiency in the core administrative functions of claims payment, eligibility management, and member risk profiling. Our payment integrity and risk management software, solutions, and analytics help health payers improve recoveries and revenue, avoid costs, and influence member well-being.