Important Factors That Can Inhibit Your Business’s Growth
You have made it through the difficult start-up phase. Your business is chugging along like a well-oiled machine—but something’s wrong. You don’t want your business to be chugging along; it should be on a fast track headed toward an exciting financial future. You may wonder, “Why isn’t my business growing faster?”
“What can I do to accelerate growth?”
“Is my business destined to be small but adequate?”
Not everyone wants to have a larger business. But it’s probably safe to say that everyone wants to have a healthy business that is making smart choices every day. Smart choices will invariably lead to growth.
Here are some things you need to consider that will put your business on a faster, more reliable, healthier growth track.
Keep A
Fresh Eye Focused on Your Business
Even if your business got off to a brilliant start, you need to examine it continually with a fresh eye. There is little time to rest on your laurels. You need to ask yourself constantly:
“Is the market changing?”
“Are competitors moving in on what we are offering?”
Your business environment constantly changes, and what might have been true last year isn’t necessarily true today. Are you earning your customers’ loyalty every day? Remaining current on your market trends and customer expectations is critical to keeping your business position in the market.
Keep the Customer Satisfied
If you see that your business market is changing, do something about it. You never want to fall behind the market trends; you want to stay on or ahead of them. If you fall behind, there are going to be other companies more than happy to grab your market share and welcome your customers in as theirs. Keeping your existing customers happy with new products, services, and/or incentives is the key to keeping ahead of the curve.
Offer Exceptional Customer Service
It’s important to gain new customers. But converting existing customers into fiercely loyal ones, who will provide great referrals, is often the key to continued growth. Also, diversify your customer base to create a stable growth environment.
Use Technology Appropriately
No matter how you feel about technology, you need a certain amount of technology support for your business. While you don’t want your business to be burdened with excessive technological demands and costs, you do want to take advantage of the important benefits appropriate technology can bring to your business.
Sizeable growth without supporting technology in place is next to impossible to achieve. An unanticipated spike in demand may leave you behind in the dust. Effective technology that is right for your company will make it easier for your business to meet growing demands, and function effectively; it will also stand ready to help you meet unanticipated growth.
Good Cash Flow Is the Key
The most critical factor that influences your company’s growth is cash flow. Without a well-managed, well-controlled cash flow, your business cannot prosper and continue to grow. If an incredible business expansion opportunity arises, or your market suddenly shifts, you won’t be able to take advantage of it without cash on hand. Your business will become severely limited in what it can do or where it can go to meet emerging trends and re-engage restless customers. A sudden need to hire more salespeople or update technology will remain unmet.
Good credit and debt management is essential. Keep your product inventory levels at the right amount. Don’t overstock or understock. Remain laser-focused on your inventory needs.
It is essential to manage cash flow properly. Some months, between late-paying customers and unanticipated equipment problems, managing cash flow can be much like herding cats: frustrating. The more experience you have running your business, the easier this will become.
You may even miss opportunities to gather cash that is being left on the table. Many business owners are dismayed to find out too late that they missed out on a great opportunity to save, or even gain cash for their business.
Don’t let that be you.
Find Out if Your Business Is Leaving Money on the Table
If your company is struggling to grow due to lack of capital, you may be in a better financial position than you think you are.
Our expert team of attorneys . . .