In today’s economy, it can be hard for a small business to succeed. From bigger competitors to an ever-changing consumer space, getting your small business to effectively grow can be a real challenge. However, there could be things you’re doing as a small business owner that’s making it even harder for you to find the success your company needs.
To help get you on a more upward trajectory, here are three of the top reasons small businesses aren’t growing and how to fight against them.
1. Lack of Liquid Funds
One of the biggest reasons small business can’t grow at the rate they’d like is a lack of funds. It’s not uncommon for someone starting out with a small business to underestimate how much time, money and effort will really have to go into making their small business grow. This could result in having all their money tied up with limited access. When this happens, you need to have an option for coming into more liquid funds.
Brent Gleeson, a contributor to Forbes, gives small business owners four ways to get more liquid funding for their business. Included in his list are options like bootstrapping, crowdsourcing, seeking investors or obtaining a loan. All of these options will give you money that you can then spend on your business in order to help you grow faster than having to wait for your products to sell in order to see a profit.
2. Misunderstanding of Marketing
If you’ve been running your small business for a while but haven’t re-evaluated your marketing plan, that may be one of the reasons your growth is being hindered. According to Small Business BC, a fledgling business focuses its marketing on getting new customers and breaking into new markets. However, this same marketing plan won’t work for small businesses who have seen a bit of growth. Once you’ve grown out of being a baby business, you need to have a more mature marketing plan for retaining customers. Without having a conscious shift in your marketing focus, you’ll never be able to grow your company with your customer base and see any real movement in your business.
3. Outdated or Irrelevant Business Plan
Just like your marketing plan needs to change as your business grows, so does your entire business plan. According to the U.S. Small Business Administration, an effective business plan should project 3 to 5 years into the future. Once you’ve passed that mark, it’s vital to come up with a new, fresh business plan to help give your company guidance over the next 3 to 5 years. Without completing a new business plan every 3 to 5 years, you’re not taking the time and thought necessary to ensure your company is growing along with your industry as the years go by.
Because running a small business takes a lot of time and effort, it can be easy to forget or overlook simple business principles that could be having a major impact on your company. If you feel like you’ve hit a brick wall with your small business, consider using the tips mentioned above to overcome some of the most common yet easiest to handle issues that prevent a small business from achieving growth.