You’ve started your business. The location is great, and you’re finally turning a profit. But, that’s all you’re doing. There’s no expansion, no increase in revenue. In short, you’ve plateaued. There are any number of reasons why this may happen to your business. Luckily, nearly every reason can be overcome with a change in mindset and some hard work. Here are the top reasons businesses stagnate, and what you can do about it.
1. Your Own Mindset.
Just because things worked a certain way when you founded your business does not mean they will work the same way two years later — or even six months later. You must be ready to adapt to new business practices and new market trends. Further, being satisfied with where your business is currently can bring everything to a halt. If you aren’t pushing for higher (but realistic) goals, your employees won’t strive to be better, either. While there is technically nothing wrong with being comfortable where you are, that mindset will stunt growth very quickly.
2. Marketing and Products.
Your marketing efforts can make or break your company. Keeping the same ads, whether online, on billboards or otherwise, for a long period of time can dull interest in your business and completely miss out on changes in the market. In the same light, keeping products or services in your repertoire that simply don’t sell can cost you, both in unsold goods and disappearing customers. Understanding your market, including what they want and how to reach them, is paramount to growth.
3. Having the Right People.
As your business was first growing, you likely needed to hire whoever was available, and quickly. Now, those people may not be right for your company anymore. As painful as it is, cutting off the unproductive branches can help your business grow again. Likewise, as you do hire more people, it is imperative you only hire those who fit your company culture and will further your business’s vision. This can be a lengthy process, but doing so can help you flourish like you did when you first started.
4.Lack of Capital.
You know the old saying: “You have to spend money to make money.” If you don’t have money to spend on new equipment, products, technology and even employees, there’s a good chance you’ll be stuck right where you are. If you see that bright horizon right in front of you, but can’t seem to reach it, it may be time to go back to investors or even to the bank for a loan. Though you may go through that money quicker than you’d like, know that growing companies consume more than stagnant ones — and your new revenue should more than cover those expenses.
5. Not Having Support.
You may be a great salesman, but a terrible marketer. Or, you simply may not have time to sit down and vet different prospective hires. Whatever it is that is holding you back, there are ways to get it done.