You run a small business, which many say is the American dream. But you have your sights set on growth and scaling up to something bigger. It's a great goal to have, but there may be barriers keeping you from doing so. The good news is that it’s within your power to overcome some of these obstacles.
Not charging enough
Simply put, if you're not charging enough for your products or services, you're never going to be able to take your business to the next level. Finding the right pricing can be a complicated feat, but by paying close attention to the market and taking all variables into consideration, you can determine the best pricing structure for maximum profit and potential scaling. Of course, charging too much will impede your progress as well. It's all about finding that sweet spot that will draw in your customers while delivering a quality product or service that they'll feel is worth the money they're spending.
Not spending enough
Frugality isn't a bad quality to have, especially if you're trying to reduce expenses and uncover hidden profits, but if you're going to scale up, you're going to have to spend some money to help make it happen. It's just a matter of where you're putting those dollars. Are you paying key employees a competitive wage? Are you using the most efficient equipment and/or software? If it will make a substantial difference in productivity, it's likely worth the investment. Don't hinder your ability to grow by holding back on necessary expenses. A business loan or credit line may help you get the funds needed to invest in growing your company.
Thinking you’re the best person for the job
As the business owner, you may believe you're the best person for the job when it comes to a variety of key roles, but it's going to be hard to grow if you're spreading yourself too thin. You may even be right in thinking you are the best person for each of the roles in question, but you’re only one individual, and there are only 24 hours in your day. Consider hiring people to fill at least some of these positions. You may find that they are even more qualified than you, or they can be trained to be.
Demanding too much control
Wanting too much control over numerous aspects of the business often goes hand-in-hand with being the best person for the job, but if you have competent employees, allow them to do the jobs you hired them to do. Micromanaging rarely results in a better outcome when those being micromanaged are having their own potential stifled. Find personnel you can trust to help you scale your business. The reality is that ideas and strategies that you hadn't thought of will emerge, and in some cases, these may just provide a better path forward.
Neglecting your own training
Even if your intent is to not be too controlling and to find the best talent possible for key roles, there will be times when you must handle certain aspects of the business on your own, or at least lead the charge. Be sure you've obtained the necessary training so you can do other jobs if necessary. And, after filling a position with an experienced or competent employee, you still should know enough about their duties to be able to supervise them and review their work performance. Make sure your employees keep their training up to date with regular refresher courses, and follow that same advice yourself.
Not keeping up with trends
It will be very difficult to grow if you can't keep up with the progress your competitors are making. Customers will sense if you’re falling behind and will seek a better alternative. Pay attention to market trends and do your best to stay current in the areas that matter. Even behind-the-scenes evolutions (like streamlined order-taking processes or an updated website) can translate to better customer experiences on the front-end. This is especially true for marketing and technology.
Not forming helpful partnerships
Sometimes it pays to look outside of your business for help. Great partnerships can help you reach new markets, increase your marketing power, and yes, scale your business. Meaningful partnerships mean building relationships, which can provide value far beyond what you envisioned when you made them. Network with other companies in your area and join the local Chamber of Commerce. Participate in industry groups and attend industry conferences to keep abreast of trends, find mentors in your field, and look for opportunities to exchange valuable information.
Not getting the most out of your banking
Take a look at all the business offerings provided by your bank. Nevada State Bank has cash management products that can help you streamline and centralize your accounts receivable processes, initiate payments efficiently, reward and help retain your employees, reduce your company’s exposure to fraud and losses, view and manage accounts online, and more. Your bank can be a valuable resource to help you achieve your goal of business growth and profitability.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A. Member FDIC