Mistakes Small Businesses Make While Trying To Grow
BY: MEGAN TOTKA ON WEDNESDAY, AUGUST 17, 2016
There are so many different reasons why entrepreneurs fail. The statistics are definitely grim with most of the small businesses ending up in bankruptcy. We can talk about this topic for a really long time but the basis is figuring out why the small businesses fail. Most of the failure stories appear when the business tries to grow. The most common met reasons for growth related problems are those that will be highlighted below. Is your company ready for higher standards? Then avoid the following problems.
Every single one of the hires done by a small company will be vital. This does mean that they will also be dangerous. Most of the hires will not perform as great as many expect. Because of this, you want to be sure that you go through a really long process that looks at as many factors of importance as possible. Focus only on the hires that can demonstrate the fact that the work that they will do will be of a very high quality. That is definitely what counts the most when you look for the talented staff. At the same time, make sure that you never keep the staff that is performing really bad. Do make the tough firing when necessary.
Investments are sometimes necessary to grow the business. That is normal. What is not normal is seeing the owner using the funds of the company to invest with options like Motif or to use his own money as extra without actually having a really good long-term plan. The money that is used by the company should be the money that the company has and not the money that the owner has. Differentiating between these two is really important for long term business success.
Modern business is highly connected with creating an effective team. The entrepreneurs now need to coach, lead and inspire the teams. That is definitely not something that is easy to do. As a business leader you have to know a lot about the company and about the staff members. It is really important that you inspire. During a growth period the companies that are not led correctly will end up losing talent. That is not something that is great and can lead towards huge problems after the next step is taken.
Not Controlling The Growth
It is quite common to end up faced with a situation in which growth happens so fast that it cannot be controlled. For any company a growth phase has to be managed in a proper way. There will be a lot of chaos associated with the growth. It does not matter if the people that work for your company are experienced or not. Problems are going to appear and it is really important that you deal with them as fast and as effectively as possible.
The really good news is that the deadly mistakes we highlighted are all really easy to prevent. Always be sure that you know everything that happens in your business. If you do that and you react really fast, it is a certainty that good results are going to happen.
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