Most small business owners eventually want to grow. As you plan your growth strategy, however, it’s important to plan carefully and avoid some common pitfalls. Let’s take a look at 10 mistakes to watch out for as you expand.
10 Small Business Mistakes to Avoid During Growth
1. Lack of Planning
Any viable small business growth strategy needs a workable plan. Consider how you’ll market your business to reach more customers. How will you keep up with increased demand? Make sure you have a plan in place that will enable you to grow at a healthy and consistent pace.
2. Trying to Grow Too Fast
While growth is an admirable goal it needs to be done in a gradual and sustainable manner. If you try to do too much too soon it’s easy to overextend yourself. Make sure your plans to expand your small business are carried out at a realistic pace.
3. Not Addressing Your Customers’ Needs
Make sure you understand your customers and what they really need. Don’t make plans to grow based on your own preferences or whims. Do plenty of market research and ask your customers what they want.
4. Not Keeping Up With Trends in Your Industry
Industries are changing faster than ever due to new technology and shifts in consumer preferences. It’s essential to take the latest developments into account as you plan your growth.
5. Inability to Meet Demand
Some businesses have trouble meeting the demand when they attempt to grow too quickly. If there’s a gap in skills, resources or inventory, your customers will become frustrated. Make sure you’re ready to handle additional customers and orders.
6. Not Foreseeing Challenges From Your Competition
Every business has competition. As you expand small business, you start competing on a new playing field. Consider who your competition will be as you get bigger and how you will deal with it.
7. Overlooking Potential Problems
In some cases, small business growth is accompanied by new problems. For example, have you considered any zoning permits or licenses you might need? Is your space large enough to accommodate more inventory or customers? Consider any challenges that are likely to spring up as you grow.
8. Overestimating Demand
Optimism is a necessary trait in business. However, you also need to be realistic. Is your projected growth based on reality or wishful thinking? Make sure there’s a real demand for your products and services.
9. Failure to Differentiate
As you grow, it becomes ever more crucial to establish unique value and differentiation. Mark out your territory and make it clear how you fill a distinct need in the marketplace.
10. Underestimating Your Need For Cash
It’s common for small businesses to overlook just how costly expansion can be. Make sure you consider all of your likely needs which may include additional space, hiring staff, purchasing inventory, marketing and other expenses and how you’re going to pay for those needs.
These small business mistakes are easy to make as you start to expand. As noted, cash flow is one of your main challenges when growing a business. One way to quickly increase your cash flow is to take advantage of invoice factoring services offered by Riviera Finance.