While the vast majority of small business and startup owners have the goal of growing their business, few understand how much work and effort it takes. Running a company that employs a dozen or so people is a vastly different experience to one that has a staff list in the thousands and offices all over the globe. And the road to success is full of pitfalls, which, if you aren’t careful, could see your business go down the tubes. It is vital for new business owners to recognize and overcome these pitfalls – so here are a few of the biggest growth challenges you will face.
Market Movement
Just as you are growing your business, you can bet that your competitors are doing the same. It’s important that you understand what your rivals are up to, as trying to grow your business while working with old, out-of-date information is the quickest route to disaster. It’s important to remember that the conditions of doing business are always changing, and your market and competitor research should reflect this.
Language Barrier
Looking to move abroad with your business? If so, you will need to learn the lingo. According to The Translation People, the language barrier can hinder your progress in a broad range of ways, from your SEO through to your technical documentation. It is vital that you have a way of adapting your message for territories that don’t speak the same language, and you also need to ensure that you are using the right terminology, nuance, and inflections.
Managing Change
Growing your business might be your dream, but it may not be shared by your employees and team members. There will be a lot of anxiety and worry that comes with significant changes, and it’s important that you can support your team through it. You will also find that as you grow, individual team members may not be able to handle the extra responsibility, and there could be situations where you need to replace them. Managing change is not easy at the best of times, but it’s even more challenging when you are simultaneously growing a business.
Cash Flow and Finances
Positive cash flow is critical when you are trying to scale a business – as is keeping track on what you are spending money on. Ultimately, without positive cash flow, you will be unable to pay for the raw materials and extra production you need to meet demand. Similarly, spending too much on either of these areas could result in your firm going bankrupt. Financial mismanagement is responsible for the vast majority of growth failures, and the results can be catastrophic.
IT Systems
Finally, the technology and systems you use to grow your business will also be vital – whether it’s your database, servers, or entire IT system. The bigger you become, the more data and information you will have to deal with, so it is vital that you have a system in place that can scale up with you. Try using cloud-based systems that allow you the opportunity of increasing as you need them.
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