Small businesses sometimes experience growth plateaus as a common stage in their ongoing cycle of expansion. However, when these plateaus last too long, it is important to take steps to break your company out of them. Here are some tips on how to get past growth plateaus.
Revise Your Business Plan
Every business should have a detailed plan that includes an executive summary, description of your company, analysis of the market, outline of your organizational structure, details of sales and marketing, and financial projections. If you are caught on a growth plateau, have a close look at your business plan to see whether you have strayed too far from your original vision. Alternatively, your original plan may be too limited to keep up with the growth your company has experienced, and you may have to extensively revise it.
Obtain Additional Financing
Your company may be stuck on a plateau because your working capital is insufficient to sustain continuing growth. You may need additional funds to develop new products, increase marketing efforts, update your technology, or bring in more personnel. One solution to this dilemma is to obtain a flexible form of financing such as accounts receivable funding, which is linked to the volume of your sales.
Delegate Work to Employees
Top level leadership needs to be able to guide the company beyond the growth plateau. To do this, you need to free yourself from mundane tasks so you can focus on the bigger picture. Delegating some of your work to subordinates not only allows you the time to lead, but it also boosts morale in giving employees opportunities for professional development and promotion. If your employees are overworked and you need additional help, consider using a staffing service, which is less costly than taking on more full-time personnel.
Learn from the Competition
Your company’s growth may be impeded because consumers find your competition’s products more attractive. If this is the case, study your competition carefully and find out what they are doing that is attention-grabbing. Find out the unique differences in your products and services that are even better and emphasize those things.
For more advice on getting through growth plateaus, contact Prosper Lending Firm.