Many entrepreneurs begin their businesses without a mentor or a business degree. They break into business with passion and determination, but like all business owners, eventually they run into a growth stumbling block. Do you know how to grow your business even when others can’t? Here are five things that every entrepreneur should know about growing a business.
- First thing: Is your business in a cyclical industry? Investopedia defines a cyclical industry as, “A type of an industry that is sensitive to the business cycle, such that revenues are generally higher in periods of economic prosperity and expansion, and lower in periods of economic downturn and contraction.” Lesson to be learned? Expect downturns and have the stamina to wait them out.
- Second thing: Cash is a catalyst for growth. An infusion of capital assures employees and customers that you’ll be there for the long haul. This could be the time to make investments in people, equipment, and infrastructure.
- Third thing: Understand the root problem for slow growth. Sure, sometimes slow growth is just part of the process. But in a few cases, there’s a specific reason or a combination of reasons. Examine your sales process, your customer service procedure, review your own products, and invite a mentor to look at your business plan.
- Fourth thing: You need a marketing plan. Word of mouth is a powerful way to reach customers, but that shouldn’t be plan A and plan B. For big growth, you need a marketing plan beyond a Facebook page. Should your business have a full-blown e-commerce website? Would you benefit from a commercial or some other type of advertisement? At some point, you need a true marketing action plan.
- Fifth thing: Finally, diversification helps businesses grow. You’re a master at manufacturing and selling widgets. What about teaching others? Take your business beyond the typical storefront and to the next level. Perhaps you could offer complementary products and services or get paid to speak?
Watching the growth in your business stall is frustrating, but it’s not the end of the road. Put these five points to work and get your business moving forward again.
Remember, running a business successfully does not need to be complicated. Keep it simple!
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Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.