If your business is growing and starting to run into a few roadblocks, it’s important to know the common obstacles entrepreneurs face when things start to go well. After all, growth is a good thing. It means you’ve been successful up to this point, and you’re ready to move to the next phase of your company’s life cycle. But the term growing pains was coined for a purpose.
It’s a real phenomenon, both for the human body and for business entities. That’s because growth implies change, mainly in terms of size, and requires added input to stay on a steady course. Money, planning, customers, luck, and a positive economic environment all help to move things along. What are the most common obstacles for businesses that are naturally getting bigger? Here’s a summary of the most common culprits.
No plan
Not having a growth plan will stifle success every time. It’s not enough that customers are showing up in droves, or that you seem to be outrunning the competition. Without a specific, written plan of how to manage increasing income, expanding markets, and higher profits, the good stuff will soon shut down. Make a detailed plan of attack for how your company intends to handle larger markets, more clients, and rising income. Think of the task as it you were writing a business plan for phase two of your organization’s life.
Not enough capital
What if the time has come to open a new branch across town but you can’t cover the rent expense? Lack of funds often stand in the way of natural expansion. Many owners choose to sell personal life insurance policies via a life settlement to obtain a quick infusion of cash. If the concept is new to you, start by reviewing a guide on how to sell a life policy when you’re looking to get money out of it for business purposes, or any other reason. The process is quite simple and takes a short time from start to finish. When facing a short-term funding crisis, a life settlement can be the wisest solution of all.
Weak customer base
What if you have the operating capital to open another branch but lack the client base to make the new location profitable. This is actually a very common situation for one-store merchants who have the financial resources to grow but don’t have the customers to support the move. When this common obstacle frustrates your ambitions, step back and spend at least six months working on marketing and promotional efforts to bring new clients into the fold.
Economic downturn
No matter how lucky you’ve been up to this point, an economic slump can stop your goals dead in their tracks. Unfortunately, most owners have no choice but to ride out the bad times and delay expansionary dreams for a later date. One way to make the most of a downturn, however, is to find ways to eliminate waste from the production and marketing cycles. Then, when times get better, you’ll be more than ready to grow.
Story by Jenna Christine
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