Ask Jo Malone: Don't pay the price for being too ambitious

Small business agony aunt Jo Malone on how to take a profitable business to the next level.

Dear Jo,

I run a digital marketing company based in the City. I started the business from home four years ago and now have 20 staff with prestigious clients, including several big retailers.

I’m ambitious and excited for our future but want to hire several senior figures to help us on the journey. How can I ensure I have the right basic management structure in place for a £200 million company as I do for a £2 million one?

You are proof that passion, ambition and hard work really does pay off and despite what we’re often told, new business success is there for the taking. If you see an opportunity, seize it and make it happen.

You’ve obviously got huge ambitions but let’s get real. To go from £2 million to £200 million over a short space of time comes with huge financial risks and things could easily backfire.

You’re in a very secure position and it would be safer and more sensible to plan and scale up gradually.

Ask yourself which roles you are recruiting for, creative or management? In my business, I’m very much the creative vision and it’s integral as we grow for me to sustain that position to ensure it remains my business and no one else’s. Consider organic development from the talent you already have, combined with new recruits who have a solid reputation and can think and act outside the box.

That said, great external hires will have bigger demands and so think about what you are prepared to sacrifice. The most common ask is equity.

Once you have a good team in place, be careful not to put too many financial pressures on everyone.

You don’t want them all working towards unrealistic goals and suffering from burn-out. If that happens, you’ll have to start again.

Finally, however large your team becomes, ensure there are not too many levels of approval to get through before a decision is signed off.