Small business entrepreneurs often have growth problems. These are usually caused by the lack of development funds, sometimes even when company achieves good sales results. In this article we listed some of the biggest growth-blockers and provided several solutions for each one of them.
Running one-man company
Many entrepreneurs tend to do everything by themselves, thinking that this way they will save more money and invest it in their business later. They also do this because they are scared that someone will steal their idea or work their job with much less dedication. In the end of the line they end up with 80 hour work week and revenue that stays the same for years. On the other hand if they choose to employ more people, and assign them with basic and administrative work, they would have more time to planning and executing company’s growth.
Inability to find investors
Investors bring money and can easily turn small business venture into a corporation that does business proper state- or nationwide. Many entrepreneurs have problems with presenting their business to investors. This should be done on various conferences and networking events, as well as with useful presentations held through webinars. Entrepreneurs should also have great business plan that they will use for presenting their business venture to possible investors, government agencies and funds that might award them with grants.
Debt collection problems
Most expert articles on this subject advise us to stay away from bad debt. For some businesses, avoiding bad debt is much harder than for others. We often work with seasonal cash flow. It means that during few months, when we earn funds we use for running our business all year round. This lead us to accept business deals with people and companies we don’t know much about. If you have a debt collection problem, your actions need to go in two major directions:
· Prevention- before signing a deal you need to do background and credit checks on companies and individuals;
· Collection- you should introduce basic debt collection plan and stick to it. It is advisable for entrepreneurs to ask for professional debt recovery help, when they are not able to collect debt by themselves for longer periods of time.
Marketing spreads the word about your business and brings customers at your door. Today, digital marketing offers great number of ways to measure conversion and determine right ways for winning over customers and making them loyal. Businesses that don’t use superb digital marketing analytics, or use them in a bad way often lack behind companies that hire expert marketers for these tasks.
If you, like most other small business entrepreneurs, don’t have budget big enough for hiring expert marketing agency, you should rely on free and less expensive marketing solutions. These are some of the websites that you might find useful for developing the right marketing approach for your company:
· Google Analytics - it measures number of visitors on your website, but it also comes with great conversion tools;
· Facebook Ads Insights - Facebook Ads are very useful, and they come with great Insights page that measures performance of commercial posts and ads;
· Google Keyword Tool- It’s an AdWords tool that helps you to choose right keywords for targeting your audience;
Some entrepreneurs are not extroverts. This means they don’t like visiting conferences, seminars and other similar events where they can acquire great business contacts and meet investors who will be ready to invest in their small business projects. Lots of networking can now be done on social media, but one-on-one talks and interactions are still very important part of business world.
Small business entrepreneurs should act like there are running huge international enterprise in all aspects of their business, accept spending. They should network and promote their business like pros, and use all benefits of latest technology and outsourcing. If they keep their entrepreneurship mentality and think big, their company will continuously grow.