Many small businesses experience growing pains followed by periods of stagnation. This can be confusing, if not downright frustrating, especially when business owners want to harness the momentum produced by growth and stay on an upward trajectory. Sometimes, those periods of stagnation can indicate that something needs to change, so they can be avoided in the future.
1. Revise your business plan
Your original business plan is not set in stone. Markets shift. Leadership changes. Internal projects take new directions. Analyze your business plan and see if any milestones or projections need to be adjusted. As a general rule, business owners should revisit their plans every year or every half year to make any necessary changes and scale operations accordingly to achieve growth.
2. Reorganize your staff
Some businesses experience stagnation when they are understaffed, or when there is a high turnover rate. Consider hiring more employees, interns, or using a staffing agency to fill out roles. Also, encourage leadership to delegate tasks to ambitious employees, or – in the case of a disconnect between management and employees – encourage leadership to work more closely with those on the front lines to see if there are any issues that need to be corrected.
3. Look at your competitors
The analysis of your competition may have changed since you first wrote up your business plan. Are there new businesses offering similar products and services? What is their marketing strategy, and could you do something different to reach more people and drive additional sales? Employing a new digital marketing strategy to avoid stagnation and enter a new period of growth.
4. Revisit your finances
Look at your expenses to see if they’ve changed from your actual budget. Are there cash flow issues from unpaid customer invoices? Is there an opportunity for a merger or acquisition that required extra funding? Could the business benefit from an extra source of working capital. Correcting internal cash flow issues or obtaining extra financing can help businesses avoid stagnation and experience growth.
Golden Century Lending provides both capital and marketing strategies for businesses that want to experience growth and avoid stagnation. Contact our offices today to learn more.