Most business owners secretly wish they could grow and expand their venture. Whether it is a second location, hiring more employees or upgrading the computer systems, the need and desire to grow a small business into a larger, more profitable endeavor is often a scary step. Here are four of the most common situations that stymie growth in small businesses.
Fear of Debt
After the first harrowing months or years of launching a business and seeing the start-up costs slowly be repaid, many business owners balk at racking up more debt to expand. While this is a healthy attitude, it can stall the enterprise if taken to an extreme. To help yourself overcome anxiety, save for your business goals and only borrow as much as you need.
Taking out a fixed-rate small business loan with a set payment each month is often easier to budget than a fluctuating credit card payment, so consider the method of borrow as well as the amount. Consult a financial planner if you are still uneasy about borrowing.
If you aren’t sure what aspect of your business needs to grow next, you may stall and do nothing. Not only is this nonproductive, but can harm your profits. For those who need help with planning the next step in business expansion, hiring a consultant for opinions and help formulating a logical process is an excellent idea. Once you are confident and focused, your business is them free to grow larger at the pace you have planned.
A second location, new department or expanded hours of operation may make it necessary to hire more staff. Anyone who has made a poor hiring decision in the past may be hesitant to try again. This is especially true if weeks of interviews produces no one who in the right fit for your firm. If possible, consider engaging a staffing firm or temp service to help you find the perfect employee. While the cost may be slightly higher, you will be sent fully qualified personnel who, many times, have already completed a drug test and preliminary training in the required skill sets. Background checks are also not uncommon.
Lack of Exit Strategy
A small business that grows too rapidly may flounder at first, especially if the expansion is a new location or department that offers new services. It will take time for your clients and the community at large to notice the new features and use them. Sub-par profits are to be expected for the new addition at first. However, do not wait until you are standing in line to take out a payday advance to pull the plug. Have a clear exit strategy mapped out in case you need to bring the business back to its previous size.
Many small business owners want to have larger, more profitable enterprises. By understanding these four possible issues, planning ahead carefully and enlisting the right help, you can enlarge your business and increase your market share, visibility, and profits.
Starting a small business and keeping it afloat can be tough. Don’t let fears of failure stunt your business growth.