Growth is a necessary part of all businesses, and rapid growth, when managed properly, can catapult a company into the position of an industry leader. However, rapid growth can quickly become uncontrollable without solid planning and proper safeguards to protect the firm’s financial and organizational resources prior to expansion.

Compass Environmental, Inc. Headquarters: Chicago Number of offices: 10 Total number of employees: 480 Year firm was established: 1995 Total billings for last fiscal year: $110 million

Since the inception of Compass Environmental in 1995, our firm’s growth has been rapid and aggressive. Between 1999 and 2003, Compass’ annual sales grew 854 percent. Over the last three years alone, Compass has more than quadrupled in size in terms of personnel, services, and locations and has increased revenues from approximately $32 million in 2003 to more than $125 million projected for 2007. Though this type of growth has presented many challenges, we have learned through experience that there are several key factors in successfully managing rapid growth without overextending company resources. Through proper planning, the support of important partners, and the implementation of sustainable systems and tools, a company can not only manage aggressive growth but continue to thrive in a competitive market.

Planning is perhaps the most fundamental step in both managing and supporting rapid growth. Developing a clear, strategic business plan creates common goals within the company and fosters shared values for all team members. Planning provides a clear understanding of the company’s clients, strengths, and competition, while serving as an operational tool that defines the company’s present status and future possibilities. The planning process also forces senior managers to identify both internal and external weaknesses and address those weaknesses in a meaningful, productive manner. By having a clear and collective understanding of the company’s present and future goals, of the tools necessary to meet those goals, and of the industry at large, a company can grow without the fear of competing internal interests or lack of foresight.

Once a plan has been established for growth, it is important to find partners who will help put that plan into action and manage the results. These partners can include a broad range of interests, from managers and employees to clients, vendors/suppliers, investors, bankers/lenders, and sureties. For example, one of our main goals as we began to grow was to establish our firm on a national level and develop a client base throughout the country. With this plan in mind, we began our rapid growth through establishing financial partnerships with private-equity investors. As a result of the financial stability this partnership offered, we were able to hire experienced managers and industry leaders, all of whom shared in the basic vision of making Compass a nationally recognized environmental firm. The partnerships established among our management quickly resulted in partnerships with clients, both old and new, as well as personnel. These partnerships quickly expanded not only our client base but also our services and allowed us to reach our goals in a quick but controlled manner.

In addition to planning and establishing partnerships, growing firms must have appropriate systems and tools in place for three major areas: supporting the current growth spurt and sustaining the growth long term, managing the increasing workload, and accurately reporting the results of the growth.

In terms of supporting and sustaining rapid growth, it is important to have a strong business development and marketing team in place. These teams maintain your company’s high visibility within the industry and your relationships with key clients, and foster partnerships with new clients. Moreover, business development provides long-term sustainability and ensures that steady growth will continue even after a large growth spurt.

Project delivery systems aid in tracking and managing an increasing backlog of work. However, rapid growth can deplete operational resources quickly without careful tracking of current and backlogged work to help mitigate overstaffing and mismanagement of projects. Further, these operational systems help managers keep tabs on budgetary and schedule concerns. In addition to managing an increasing workload, proper operational management helps create client loyalty and growth on future projects; high quality and safe execution has to be the outcome on every project.

Finally, a rapidly growing business must keep careful track of project results in terms of accounting to make sure payments are being made to the firm and that it is meeting its obligations to vendors and subcontractors—a common problem for rapidly growing companies experiencing cash-flow issues.

Perhaps the greatest requisites to mitigating the problems associated with rapid growth are patience and a passionate commitment to quality. Even the best business plans require a flexible response to market realities. With a little patience and a focus on careful planning, lasting partnerships, superior execution, and tracking systems, a company can grow exponentially.

Jonathon K. Markoff is chairman/CEO Compass Environmental, Inc. He can be reached at jkmarkoff@compassenvironmental.com.