As a business owner, it is difficult to keep your business continually having sustainable growth. It takes real dedication and long hours of work to manage the business, employees and clients that work effectively with you.
As your business keeps growing, it’s certain there will be periods of plateau. But how do you recognize when your business is going through this? Ask yourself the following questions:
Recognizing that a change would be effective for your business growth, can then lead you to the right path. What is the solution to push out of that? Some advisors will tell you to spend more money in marketing or remodel the look, or revamp the product offering so that your business can keep on growing. But there are some basics you can address before spending your money on more flashy cures.
1. Is Your Business Plan Outdated?
Having a business plan that is up to date is essential to keep growing your business. If you started your business years ago, and the business plan hasn’t been dusted off, it might be a good idea to do so. As technology advances and business strategies mature, an outdated business plan might just cause your business to lose relevance from businesses who are taking advantage and working on their business with these changes.
What should be re-assessed:
- Resources (financial, human, etc.)
- Changes in competition (both in your industry and others)
2. Is Your Client Focus Elsewhere?
Should you consider having less, but more profitable clients instead of having a magnitude of them? People have a big misconception that having more clients helps you be more profitable, but sometimes having less is more. Think about it, if you don’t have enough human resources, having too many clients might burn you out as a business owner as well as not performing the most optimal service you promised your clients. By having a smaller clientele, it can help you focus and your business to perform better.
3. Consider Changing Your Price Strategy
Are your prices in sync with your business development? Charging too little for your products or services give the impression of a cheap brand. Unless bargain basement is your target, having the price too low will also attract the wrong type of customer. If you are providing the lowest price available, you’ll get the type of client that is always looking for the cheapest price available. Which means that if they find something cheaper then they’ll just move on.
A smart approach involves increasing your prices regularly. This provides additional revenue to increase value to your best clients. This is not only economically efficient, but it also creates value to your business and your work while attracting the right clients.
These are just some concepts to consider if your business is plateauing. However, talking with a professional about your long-term goals to the right path of success can quickly supercharge your direction. We’ll work with you to analyze the exact situation and help you recharge that spark in your business- and probably your enthusiasm. Give us a call so we can work on strategies, problem solving and business development with you.
Plus, learn more about our Business Compass Program to take control of your small business financials and have them start working for you.
Visit our Entrepreneur’s Guide to Accounting for more valuable articles like this one to help you build the right foundation for your business financials.