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Business Owners & Managers

5 Sure Ways To Slow The Growth Of Your Business (and how to prevent them)

The following are a few key factors that, if left unattended, can cause even the best business idea to slowly suffocate.

1. Lack of effective planning

Business planning is a continual process of setting goals, developing plans, and working every day to achieve them. Proper business planning spans all areas of the business including budgeting, tax planning, and growth opportunities.

2. Spending money deliberately

Do you know what a lead costs you? What a booked job costs you? Planning means nothing if you are not monitoring how well your business is running and making necessary adjustments. What does your daily cash flow look like? Where in your business are you breaking even? Are there jobs that cost you money? Jobs that make you the most money? What is the lead acquisition cost of those jobs?

3. Ineffective marketing techniques

Marketing is essential to expanding and maintaining your customer base. If your current marketing techniques are not bringing in customers then reevaluate them. If you do not have the time or knowhow to effectively market your business, then hire someone else to do it.

4. Out of touch with customers

Having a personal relationship with customers is an important asset that many business owners do not enjoy. In order to maintain good relations with your customers, you should focus on quality products and service, monitoring customer satisfaction, and asking your customers for suggestions or improvements.

What do they need? What bothers them? What are deal breakers for them? What do they really care about? Are you offering it?

5. If you want it to grow - pour champagne on it

Many small business owners do not realize the potential hidden within their own workforce. When your workers are happy then productivity rises and customers have a more positive experience that can lead to an increase in sales. Your workers are also a source of business-improving suggestions and problem-solving ideas. Therefore, make sure to establish a system of employee advancement as well as a system that recognizes good work performance.

While there are other areas where your business can stall, making sure you look after the five mentioned here will help you continue to grow, while identifying any other areas of concern.

Nick Tan
Institute of Innovation

What other areas of business should pros look out for to maintain growth? Join our forum to share your tips or ask other pros for advice.