“Stagnation” is a scary word for most business owners. However, at some point almost every business hits a rough patch. It is important to evaluate your business processes when this occurs. The following are a few common reasons that you may experience stagnation within your business:
Trying to Do Everything Yourself
No one can do everything. As a business owner, you can’t manage social media, perform the hiring, clean the bathrooms, and do accounting – or at least you cannot do it all well!
Many companies are stagnant because business owners try to do everything themselves. Know when it is time to hire an employee. Sure, another employee means more payroll but sometimes growing your team is the only way to increase a company’s revenue. Be realistic with what you can do.
Unfamiliar with Customers
Are you pumping out thousands of dollars in ads and still not getting results? The problem could be that you do not know your customers. Before you create another ad, perform thorough market research.
Priorities of a Market Analysis
- Estimated market size
- Key communication channel
Lack of Capital
Most entrepreneurs avoid taking out loans unless absolutely necessary. However, you have to spend money to make money! Sometimes a loan is necessary to purchase equipment that can advance business operations. A smart purchase can be an investment toward your business and put you ahead.
Loans for Small Business Owners:
No Defined Niche
No business can be all things to all people. If your business is stagnant than your target audience might be too broad. Try narrowing down your audience so you know exactly who you want to do business with.
For example, as the owner of a website development and online marketing company, I had to establish the type of companies that I want to work with. While I realize I could make more money with large businesses, they are not my niche. I market toward businesses that have 5 or fewer employees, or other independent contractors.
Poorly Trained Employees
Your employees are essential to your business growth. If they are not trained to do their jobs then your company will remain stagnant.
For example, if you rely on salespeople at your company, make sure you have provided them with all of the product information, tools, and training to do their jobs well.
Stagnation is normal in every business. Keep these five key areas in mind when your business pauses in growth. Get Global Marketing can perform a full market analysis of your customers.