Reasons Your Business’ Growth has Stalled (and What You Can Do)
Apple, Kmart, and Levi-Strauss — what’s one thing these three very different companies have in common? They’ve all gone through periods where their growth has stalled and the companies have floundered. Although it isn’t something any business wants, a pause in growth or even a decrease in growth is fairly common. The good news is that a period of stalled growth can be survived or even avoided, if you know where to look for problems.
You’ve Ignored the Competition
There will always be competition out there, and it’s important for a company to continue to be aware of what similar businesses are doing or how those businesses might claim a portion of a company’s market share. When your business is in a comfortable spot — sales are up, employees are happy, and your company’s value is increasing, it can be easy to ignore what the other guys are doing or to think that it won’t affect you.
One way to avoid a business plateau due to increased competition is to pay attention to what similar companies are doing. Examine their products or services and look at how your company’s differ from theirs. For example, a competitor might offer a lower cost version of your core product. Since it helps no one if you get in a price war with a competitor, one way to avoid a loss of sales (and growth) is to highlight how your product is better and why it demands a higher price.
You’ve Shifted Focus Away From Your Core Business
Companies grow and change throughout the years. But, a company that abandons its core product or its bread and butter money maker in favor of the unknown is likely to hit a few roadblocks or to miss out on an opportunity to grow and develop. Keep up research and development on new products. But, don’t toss out the products that people have consistently relied on your company to produce, and are going to continue to rely on your company to produce.
Customers are Bailing
Whether they are moving on to your competitors or simply no longer interested in your products or services, it’s never a good sign when customers start leaving your company in droves. One way to get and keep your customers is to really understand who your customer is. You can look at this as choosing the customers for your business, rather than having them choose you.
Take a look at your product or service and ask yourself who it is intended for, what problem it solves, who would benefit the most from it. Then, focus on retaining or acquiring that customer. Instead of struggling to keep customers who might be lukewarm at best about what you have to offer, you’ll be going after and retaining the customers who will really get the most out of your company.
You Don’t Have the Right Team
Your company can have a comprehensive strategic plan in place and a clear roadmap laid out for growth. But, without the right team in place, a team that’s able to help you put that plan into action or follow that map, business growth is likely to stall or falter. There are many reasons why your employees or management team can keep your company from achieving growth. It could be that you hired people who don’t have the skills needed to successfully market the company or to come up with solutions to problems that might arise.
If growth is your goal, it pays to assemble a management team that has past experience growing a company. You might not need to hire someone full time. It can be helpful enough to work with an outsourced, virtual chief financial officer who has a track record of helping companies develop strategic plans and grow their businesses.
Whether your company is in a period of stalled growth or you are concerned about the potential for a business plateau, speak with the team at New Direction Capital today. Our goal is to provide you with the solutions you need to help your company grow.
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