4 Reasons a Business will Experience Slow Growth
by Kevin Smith AuthorFor many business owners, understanding why they are not
growing is a complete mystery. In those circumstances, advice from business
growth consulting companies can be invaluable, but only if the problems
addressed are actually why the business is stagnant; if they do not, nothing
will change. Here are four common reasons why businesses often fail to grow and
what can be done about them.
Insufficient Marketing
Unfortunately, marketing, especially for businesses that
take off quickly, is often overlooked. Marketing in this sense includes your
products or services as well as marketing your company to the greater
community. Even if your client base is located somewhere different than your
headquarters, maintaining an active marketing effort at home and abroad is a
smart strategy. This includes general marketing, community outreach, branding,
promotions, trade shows, etc.
Fear of Lack of Control
Your business is your baby, but that does not mean you know
how to grow it beyond its initial success. Another common factor that leads to
stagnation in a business is an owner or owners who refuse to delegate responsibilities,
are always looking over their employees’ shoulders and insist on being involved
in every little aspect of the business. Most owners do not know their industry
as well as they think and usually have no clue as to how to grow it into a staid
business rather than a start-up.
Inefficiencies and Impracticalities
When your business was being run out of your house or in a
tiny storefront, stuff that you allowed yourself and employees to do was
permissible because they did not matter. As your business grows, however, many
of those “traditions” are actually destructive to your core goals. For example,
when you were a two-person operation, overlooking inventory was OK because you
were so small addressing a shortfall was simple. Or maybe your accounting
processes lagged because, well, who has time for accounting when you are
selling a product? These types of issues that were not problems when you were
small can very quickly become major issues when you are a larger company.
Lack of Planning
Initially, when the business was taking off, your “business
plan” was to get up early and start selling. As you have grown, that approach
has become antiquated and even destructive. Every successful business reaches a
point where a more formal approach to planning is necessary in order to allow
the company to grow sensibly.
Most businesses that look for help from business growth consulting companies do so because of one of these
four issues or a combination of the four. If your business growth is slowing or
stagnant start here to begin to get back to consistent growth.
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Created on Mar 5th 2019 22:47. Viewed 504 times.