The mere mention of growth can be a scary proposition for many business owners. Without growth, however, your business can become stagnant, maybe even boring, and crumble over time. It’s important to understand why you may be resisting business growth, why growth is so important and how a small business coach can help you develop the right growth strategy.
Why Business Owners Resist Growth
The most common reason business owners resist growth is complacency. Many business owners are happy with their company’s current performance and they see no reason to change it. You know the old phrase -- “If it’s not broke, don’t fix it.”
In addition, growth doesn’t come without some risks. There is never any guarantee that your new venture will prove successful. These risks are elevated even more if your growth plan required an additional investment or increased costs.
Then, there’s control over the business. Growth could mean a bigger office space, more employees, larger client list and increased inventory. As a business owner, you may like having control over every aspect of the business, but as your business grows you may be forced to delegate some of these duties.
Why Growth Is Vital for Future Success
The problem is that old saying “If it’s not broke, don’t fix it,” doesn’t work well when it comes to businesses. The harsh reality is that 70 percent of all small businesses fail within the first 10 years. The top two reasons for these failures are cash flow issues and no market for the company's goods or services.
Boost Sales
Yes, business growth may require a higher investment, but a stagnant business could spell disaster. There is no way to maintain a successful business if sales remain constant while expenses increase. You can consider raising your rates, but you can’t price yourself out of the market or you will lose customers fast.
Spurs Innovation
One of the primary benefits of growth planning is that it spurs innovation. Without innovation, your company will only last until the next bigger and better goods or services come along. In order to remain competitive over the long haul, your business must move with the industry. Otherwise, you risk there being no market for your current goods or services within just a few years.
Meet Customer’s Needs
While brand loyalty still exists, it is not nearly as valuable as it once was. A recent study revealed that while 90 percent of businesses invest in loyalty programs, less than 25 percent of consumers claim to have a relationship with the company. This means that businesses must be constantly evolving to meet their customers' current demands or risk losing them to the competition.
Importance of a Strategic Growth Plan
Business growth doesn’t happen by accident and it shouldn’t be sporadic. In your haste to maximize the benefits of business growth, it is vital to have a strategic plan in place. Developing a strategic growth plan will make sure your business grows at a manageable rate. One that triggers innovations, improved customer relations and, most importantly, growth will lead to business success.
Developing a growth plan that works right for your specific company is not an easy process. It is best to work with a small business coach in Denver to develop the ideal strategy for your company. Your small business coach will start by completing an unbiased evaluation of the current state of your business. This is a crucial step because it can expose business challenges that you may not have considered.
Your small business coach in Denver will then take this evaluation combined with your specific business goals and mission to develop a growth plan that can help you take your business to the next level. Small businesses coaches offer more than just advice -- they offer real solutions. Learn more about strategic growth planning by calling Traction, your small business planning experts today.