Growth is the hollowed ground for small businesses and as such, it is sought after far and wide. However, there are hurdles or blockers that may be standing in the way of your.business growth. A lot of them have to do with you the entrepreneur and how you see things more than the business itself or the actual conditions you are facing. The 5 growth hurdles here are things you will have to overcome if you want your business to grow right.
1 Information overload
As your business grows, there’s a lot more to handle and naturally more information you have access to. More information is good, as long as you know how and where to use it. Many businesses fail to grow because they want to grasp.at every little piece of information they can. With that comes the problem of making otherwise simple decisions seem extremely complicated. The digital age presents that little problem where there is so much data available to you but some of it is rubbish data for particular decision-making purposes. A publishing house which knows that their book customers have a kindle reader, for example, is useful information for their publishing platform decisions going forward while knowing that they have cats may not be useful information for the decision at hand.
Yes, there’s a whole school of thought that says you have to spend money to make money, they are not wrong. What matters is what you spend it on. One of the biggest problems small businesses can have early on is too much money. The abundance of money tends to be coupled with spending it on things that are not critical to the business but may have the owner feeling good. Many small business owners tell of how they practically wasted their initial capital, woke up when the company was on the brink of a very expensive collapse and then came up with the winning formula in an attempt to survive the crisis they had spent themself into. Matching staff uniforms are good, spending money on advertising is better. Whether you have an abundance of cash or not, make sure that firstly everything you’re spending money on is important and that secondly, it will lead to your bottom-line growth.
3 Fear of letting go
Growth is change and change comes with pain. I the process of growing your business you will have to deal with decisions such as hiring, outsourcing, delegating and new processes to deliver your product such as using distribution partners. That’s all good but rarely do people actually want to live with the consequences of the change. In the beginning, most small business owners wear multiple hats and perform all or almost all of the functions. Where the business owner is a technician at heart (they love the work) letting go of the role may be difficult and what more likely happens is clashes with the people they are supposed to delegate the tasks to. The only issue is that you have to let go to grow. Of course not let go entirely but enough for the process to be able to run.without you. You then free yourself up for higher-level tasks.
4 Getting the wrong people
Another subject we really love on this platform is hiring. Business processes are run by people and so the business is only as good at carrying out its processes as the people who run those processes. This is not just a matter of skills, qualifications and experience but a matter of both character and culture fit. It would be unwise to employ a person with a cold demeanour for a customer-facing role even if they presented the best qualifications. So to would it be unwise to put an uptight person in a business that has a laid back culture. These matters may seem small but they are in fact the factors that will heavily determine the levels of job performance and satisfaction you will get out of a new recruit.
5 Dealing with competitors
If what you’re doing is worthwhile with visible growth sooner or later someone will want a piece of that market too. Reacting to your competitors is important but should be done with care. Your competitors don’t pay you, your customers do. However, if you drop the ball your customers will pay your competitors instead of you. This is something you want to avoid and minimise at all costs. Know your competitor and while you’re at it know your customer. The competitor can only reasonably threaten you if they’re offering the customer a better deal than you are. And that’s not only price, but customers may also sometimes place greater value on things like convenience, delivery, payment methods and others which seem secondary.
These 5 hurdles can prevent you from growing if you allow them to. What’s important is having perspective and mentorship can really help with that when it comes to understanding how these should be viewed in terms of your business.