There are many reasons why a small business remains small. Often its owners do not know what needs to be done for its growth. In another case, this is facilitated by very high competition in a particular geographical area. The main reason for this may also be that the market is oversaturated.
Most firms fall into one of four categories.
Level 1. At this level, there is only one reason for failure. She is the founder of the business. Tiny businesses that do not have a sufficient number of employees do not bring enough profit and cannot be sustainable. Most companies start at this level. For a business to become successful, it must leave this level as soon as possible. Most companies fail at level 1.
Level 2. The business brings enough profit to maintain it in this condition and make payments to its owner. At this stage, enough money to hire several employees. Most companies survive at this stage, but remain small. There is nothing wrong with level 2. You can be happy with one or even two companies at this level. A completely different type of thinking is required to reach level 3.
Level 3. The owner of the business was able to increase its size. A business can reach this point only if its owner has the will and desire to delegate authority. Most companies never reach this point. Scaling requires a system. Most entrepreneurs focus on "putting out fires," rather than creating a system. Without a system, expanding a business is impossible. It is very difficult for many entrepreneurs to understand. Systems make business founders redundant.
Level 4. Large companies with revenues of more than $ 100 million. At this level, the entire business is built on systems ranging from the sales organization process to customer service. At this level, everything is completely interchangeable. Business is a car. He no longer depends on the hero, who is an entrepreneur. Moreover, the system itself is this hero.
The main reasons why the business remains small
Don't belittle yourself
Modesty is a wonderful quality, but not for a business that needs a little push. If you belittle your business, others will do the same. You need to sing laudatory songs of what you do. Make people talk about your business, this will make word of mouth work. Talk about your business with people wherever you meet them. Do not forget about social networks. You can establish instant communication with potential customers / buyers in many ways.
You do not know where to go
You need to have a better understanding of your business. Do not focus on daily chores. How do you see your business in the future? Are you planning to switch to other areas of service or sales? You need to visualize your desires. If you get an important idea, write it down. Make your plan as clear as day. Write down step by step what you plan to do to achieve your goal. Unless you have a clear idea of how you are going to change the current situation, you cannot change it. If you don’t understand what steps you need to take, you will wander in the dark. So take a few days to decide where you need to go and what you need to do.
Do not waste time doing trivial tasks
Now that you know where you are heading, think about your daily priorities. You as a business owner carry out a huge number of different tasks. It is easiest to spend a large amount of time doing a large amount of different work. But employment does not mean productivity. It is very important not to waste time on tasks that are less important. Some tasks seem important because their deadline is coming to an end. Think about it, are these tasks so important? Remember the goals of your business and the order in which they are achieved and think about whether these tasks are closer to these goals? If not, discard them or delegate to other people.
Pricing Based on Fear
When you started your business, you set low prices so that people can buy your goods. But when you declare the value of a product or service, it means that people believe in their value, which reflects the numbers. Do not be afraid to raise prices. Now you have more experience and you know how to ensure good quality. Why not reflect in the price? Look not only at what you have earned, but also at what you could earn. Do not avoid making changes because of your fears. The lack of change is another reason small businesses are not growing.
Do not drive yourself to death
Entrepreneurs often think that they should do everything themselves. From the very beginning, you are in a hurry to have time to do everything yourself. Then you discover that you are either working or thinking about work all the time. But it's not right. In an accident in an airplane, instructions recommend putting the mask on yourself first, and only then helping others. In business, you also need to take care of yourself first. Only if you maintain your health and sanity can you take your business to the next level. Do not forget to delegate your authority. There are writers, accountants, and virtual assistants available 24/7. You must constantly think about outsourcing certain tasks or assigning them to your company employees.
Wrong attitude to risk
There are two types of risk in a business that are dangerous to it. Some business owners are very rarely at risk. They invest in new ideas not enough time and money, so they cannot achieve their goals. On the other hand, there are also such entrepreneurs who are constantly at great risk. Naturally, their failures occur more often. It may happen that after some failures it will be impossible to recover.
Although there are many reasons that impede business development, many of them can be avoided with a little effort.