There are reasons why a small business will never expand.
The problem is not really that you want to start a business or that you have been running a business for some time now.
The great possibility that there are thousands of people already doing the same kind of business you are doing is frightening and making a massive profit from your small business is no walk in the park.
Think about the old Johnny’s coffee shop downtown.
You’ve known that shop since you were a kid and your uncle Tommy took you there for coffee a lot that it became part of a time out with him, but Old Johnny’s coffee shop has remained in its small size and finances for decades while other businesses have started and gotten better than that city’s favorite coffee shop.
Isn’t there a reason why?
Isn’t there a reason why with the advance of favorable technology and business discoveries, the business and others like it has refused to grow?
In this article, we would be looking at the top 6 crazy reasons why a small business will never expand and how you can correct those mistakes and expand your business.
Why Expand Your Small Business?
Businesses are open, my friend, to rake in profit while giving great values that would affect their clients.
Without profit, a business would go under, the founder’s dream would die off and finances, time, and other resources would be lost.
The business realities of today have afforded a lot of people the time to kick back and re-evaluate their business models to figure out where they are at the moment and the way forward.
My dad ran a small construction materials sales business in my city while growing up. I figured out that the business was not making as much profit for him.
The single need to make profits and fulfill his business dreams led him to diversify and expand; he had to think about his business model again.
You should be making a profit and impacting your society. This is a great reason to think about expanding your business.
Another reason to think about expanding your business is that it allows you to expand your product or services list and grow your revenue.
The business expansion would mean different to different people but at the core of it is the need to make more profit and gain better visibility.
6 Critical Reasons Why A Small Business Will Never Expand
· No Clearly Defined Goal Or Target
Let’s face it. So many people started their business either because they fancied the idea of owning a business or just because they wanted to start something.
The biggest reason why your business needs a business plan before you start is that it affords you the chance to clearly define a lot of the variables associated with your business while starting.
Your business goals or target are critically considered while working on your business plan and it is very important that you lay it bare on paper.
Without a goal or target, you would hardly measure growth or even financial milestones. A business without a clearly defined target would just function on soft pedal and tends to crash on impulse.
Why run a business without a clearly defined goal or target?
Would you want to waste your time and limited resources only to discover much later that you could have done better?
It takes even less effort to run a profitable business than it takes to run a profitless business.
· Loss Of Interest
This is yet one of the other reasons why a small business will never expand.
So many businesses that had a huge potential has remained in obscurity because the owner lost interest in the business.
Business is really not hard when you put your mind to it and employ the best result-oriented strategies that are guaranteed to help you grow.
There are a plethora of reasons why people lose interest in their businesses; introduction to unfavorable government policies, change in trends, and of course, the founder’s laziness.
When you run a business in a niche that does not interest you, you are bound to quit after a short while.
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· Lack Of Adequate Knowledge And Skill
Before I started my business consultancy firm, I was a manager at a popular digital printing firm in my city.
To people seeing from the outside, we were on the right track but from the inside, the company was gradually dying.
The founder, who just retired started the business without adequate knowledge of how the business functions and how to measure growth in the business.
This lack of knowledge left me handicapped because every effort to employ growth strategies that were supposed to keep us afloat and profitable was frustrated by the founder because he didn’t have a very clear understanding of what should be done.
When you lack a clear knowledge or skill in your business, you are definitely heading for the sticks.
It is of no use to start a business when you do not, as the owner, have adequate knowledge or skill to handle the business.
It saves you from spending unnecessarily and also saves you valuable time. Your staff or employee would be up and doing, knowing that you can step in and do their job any day you decide that they are no longer fit for your business.
· Lack Of Resources
Money makes more money!
When a business owner does not have adequate resources to grow a business, the business would not grow.
Some businesses don’t have enough resources to take care of their expansion as hiring new team members may end up expensive or less cost-effective.
The expansion entails that you dig deep into other areas of your business for optimum functionality.
Without the right kind of resources needed for not just growth but expansion, the business would remain a simple source of income for the foreseeable future.
· Poor Product/ Service
People do business with you because you provide a solution to their business needs or because you provide products they need.
When your products and/or services are poor, you would likely not retain clients.
A huge client base is the sole of a huge profit margin. Customer acquisition and retention is a skill that you must have.
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I have walked into business premises where I decided never to go back to because their customer service game is really poor.
So many businesses have gone under because they have not taken customer service seriously.
Some things should not be!
So many people are seriously comfortable with the state of their business that it has become a comfort zone.
I understand that business goals differ but why settle for less when you can be more?
Settling for mediocrity is a sure way to not grow and expand your business.
How To Expand Your Small Business
Do you want to expand your business?
There are many factors to consider when starting off your business and the future growth prospect is one of them.
As long as the business owner knows what to expect, he would plan better on how to approach growth.
Below are some of the best ways to expand your business.
You see, customers see everything. You would not grow as much when you neglect your customers.
Customer acquisition is one thing, customer retention is another. When you put your customers’ welfare first, you stand a better chance to grow and get you thinking of expansion.
The complete knowledge of your customer would help you understand their need and how best to approach them as you provide solutions.
Source For Partners
No matter how well-versed you are in business, it always works better when you partner with the right people.
Creating the right business relationship is a great step to business growth and expansion.
There is a great silver lining to growing a business with co-branding. Co-branding entails that you partner with another firm to introduce a new product or service into the market.
With the exposure business partnership provides, you would become even more exposed to a whole new market.
Trust Your Expertise
Do you offer services? Trusting your expertise comes in handy when you seek to grow or expand an existing business.
Service-based businesses depend on the expertise of the founders.
This reliable expertise would help you cut off the large chunk of money you would have to pay a consultant to step in and get the job done.
For instance, if you have a great eye for interior decorations, you wouldn’t have any need for an interior decoration expert.
As a brand identity specialist, I have been able to kick-start a lot of brand expressions for my personality.
Without that set of skills, it would have cost me a fortune to hire another professional to get the job done.
Plan To Reinvest
Another of the reasons why a small business will never expand is when they ignore investments into their business.
The stage of expansion is a stage of huge expenditure. Be it as it may, you should be careful enough to mark out how much of your existing revenue to plug back into the business as a reinvestment.
It is always tricky when expanding that you believe that the new business would get running and generate money almost at an instant.
This is not necessarily so. Consider your new expression as a fresh business. New businesses need enough time to get off the ground and so, would need a steady investment from its founder.