Just because a company has demonstrated strong growth doesn't mean it will sustain it without the right person at the helm. Businesses need to maintain the right c-level staff to ensure that they don't simply grow fast but also have the long-term plan to keep developing into a long-lasting company. Otherwise, the organization risks drying up and turning into a "zombie." This term basically refers to a business that is no longer profitable and drains resources even if it once seemed promising.
While it's particularly important for startups to stop this sort of effect from growing, zombie companies are a wide trend. One article for CityWireGlobal quotes investment expert Bill Gross, who connects the problem to low interest rates that fuel bad corporations. However, there's a possible solution to this problem: good management.
Sathvik Tantry cites this as one of the ways venture capitalists have to counter stagnating businesses. Tantry also lists some options available to those who head these companies.
"Tech entrepreneurs can do their part by identifying their 'local maximum,'" Tantry says. "Founders must think about the implications and expectations of raising money and assess whether they are actually realistic. If they aren't, it's better either to raise less or sell the company," the author adds.
To please the venture capitalists behind a new company, younger businesses might seek out a retained executive search firm able to commit to finding someone to fill an executive role within a specific timeframe. That way, they can find someone who will keep a company thriving as it moves into a new era.
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