Most businesses fail to grow, with a vast majority remaining tiny, one or two-person entities. Even if a business isn’t destined to be the next Google, Amazon or Facebook, it can still become a thriving, mid-market company. Here are three barriers you need to bust through if you want your business to grow.
1. The Business Owner Won't Let Go.
According to a recent study, this is the primary reason that only 5% of businesses break the $1 million revenue mark and only about 12% of those businesses reach 10 million in revenue. Either the owner thinks he’s the only person capable of getting things done or he tried to delegate in the past but got burned by a bad hire and can’t trust anyone again. The only way to get through this is to find people who can do things better than you and who don't need to be managed. Will the people you hire mess up sometimes? Yes, but you just have to deal with that. If you suffer the short-term challenges of bringing someone up to speed, your life will get a lot easier and your company will be able to tackle bigger projects and contracts.
2. Being Too Cheap
In the startup phase, when you’re not making much money, you’ve got to be careful with even the small expenses. But there comes a point where you have to invest in your business or it won’t grow. You don’t have to break the bank, but at some point you’re going to have to upgrade some of your systems, whether that means your accounting software, phones, IT infrastructure or office space.
Probably the most important step you can take is to find a great accountant or CFO. Most entrepreneurs think they should spend money on making or selling stuff, like they did in the startup phase. However, as your business grows, you need detailed data about where you're making money - or not - to make the right decisions. Hiring a great accountant or CFO will cost you, but it will help you make money in the long run.
3. Not Adjusting to Changing Markets.
If your business starts to grow, you’re going to find yourself with more competition. For example, the big guys will realize you're on to something, get angry when you ruin their quarter, and try to knock you down so you don't steal any more market share. Meanwhile, your customers are going to want price concessions as they do more business with you.
When your business is in the beginning stages, it’s easy to get sucked into day-to-day operations but this is precisely when you need to start paying more attention to your market and begin delegating internal matters to a strong team. As CEO, your job is coming up with the right strategy to keep growing your business. It’s only when you are willing to adjust your mindset that your company will be able to grow.
Bean Counters Bookkeeping is a virtual bookkeeping business; so that you can focus on what is important, your business. www.thebeancountersbookkeeping.com