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5 growth hurdles small businesses need to overcome

Most small business wants to grow into an empire but there are growth hurdles along the way. Many of these hurdles could lead to a small business’ demise but they can be overcome.

1. Information overload

With advent of the internet, businesspeople have information at their fingertips and though this has some advantages, there is the risk of information overload. It is crucial to use well considered key words or phrases when doing searches on the internet. It is also important to check the source where you get your information from. Is it trustworthy and what bias might it have? You can also speak to successful business owners and learn from their experiences in the business world.

2. Cash flow haemorrhaging

Growth can become addictive and many entrepreneurs invest money into the growth of the company without considering the effect it has on their cash flow. As we have heard many times cash flow is the lifeblood of your company and if you bleed out to grow your business then it will die. Consequently, it is crucial to manage your money extra carefully during your growth periods. Furthermore, you should negotiate terms which benefit both you and your supplier or vendor. Lastly, ensure that the channels which bring you consistent sales are being used to the max during your growth period to ensure your bottom-line doesn’t bottom out.

3. Fear of letting go

As your business grows your position as founder will begin to change. Where you may have had to wear many hats as a founder from accountant to employee there will come a time when you need to delegate. You will need to give control over of some processes in your business to other people. You will need to be working on your business rather than in your business. This will entail creating strategies and processes which can be scaled as your business grows. You will also need to trust your leadership team and only get involved if you feel it is truly necessary and you won’t undermine their leadership.

4. Hiring right

When there is rapid growth in a business, entrepreneurs tend to speed up the hiring process to compensate for all the new work. But it must be remembered a quick hire could be an expensive hire. When hiring staff for your business, it is important to consider their character as well as their skill. Why character is important is because your company’s culture can be carried out easier when you hire people who ascribe to your company’s culture. If your employees don’t ascribe to your company culture, then you will struggle to grow a business which carries the company culture you have cultivated since inception.

5. Reacting to competition

When your competitors see the growth in your business and the successes you are having they may decide to join the market. This in turn can lead to fierce competition in your industry. Where it might be easier to respond and retaliate against your competition, it is important to remain focused on your core business. Keep doing your job excellently and to the satisfaction of your customers and the competition will soon flounder when they see that they can’t add your special brand of magic to their product. Remember people buy from people they like and trust.

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