Let’s face it. Starting a business, challenging as that is, is still easier than growing a business. Virtually every business struggles with growing pains. Even large companies struggle to sustain continuous healthy growth. And here’s the thing. The growth challenges faced by a 6-month-old 10-person business are quite different from the challenges faced by a 20-year-old 100-person company.
The Reasons New Businesses Fail
To overcome growing pains and not “flame out early,” it is important to note and correct these reasons for small business failures:
- Not investigating and really understanding the market you plan to enter with your business.
- Not having a well-thought-through business plan.
- Having a poor location.
- Not having a good marketing, social media, and internet presence.
- Having too little financing.
- Being inflexible to change.
- Trying to expand too fast.
What Are Some Significant Growing Pains Faced by Small to Mid-Sized Businesses
Consider some growing pains faced by many small to mid-sized businesses and use these tips so you can overcome them:
First, develop a clear conception of your long-term goals so your business doesn’t wander, as the Beatles sang, down “a long and winding road.”
Second, keep a strong business focus. Know your customers and what they want and stick to it. Don’t try to be everything to everyone.
Third, don’t make the mistake of hiring the wrong people. Get the right people “on the bus” and in the “right seats on the bus” by carefully selecting the talent you need, and then providing good job clarity and effective training. Also, watch the timing of your hires. Hiring too soon will burden you with costs. Hiring too late can leave you weak and unprepared for opportunities.
Fourth, build a healthy company culture, a culture that will support growth and help you retain talented employees.
Fifth, ensure the development of open and effective communications processes within the organization.
Sixth, don’t focus too little or too late on marketing. Ensure that you work hard to find and acquire customers and work hard to increase brand awareness.
Seventh, watch your finances carefully and ensure you have adequate funding for growth. Many businesses fail due to cash flow and capital problems.
Eighth, build a scalable organization. That may involve outsourcing important administrative functions, like payroll, for example. Don’t scale too fast.
Don’t Let Growing Pains Stunt Your Growth
When you understand the challenges of growth you can act wisely to overcome growing pains. Know that company culture matters, both for your employees and for your customers, because what happens inside the company affects what happens outside the company. Know that having the right talent (talent that fits your culture) is absolutely essential. Know that budgets and financial planning are critical. Know that getting outside advice and assistance can be very helpful.
Choose an Expert Payroll Service to Assist You
Overcome growing pains. Choose an expert payroll service to assist you, Palmetto Payroll. We have offices in Columbia and Charleston, serving over 300 business owners statewide. We offer tailored solutions, saving you time and money so you can grow and thrive including payroll, tax depositing and filing, management reporting, Human Resource Services, and timekeeping services.