For every small business, the opportunity to grow and expand is alluring. In the early days, running a small company can be a frustrating and unrewarding experience, so it can be tempting to try and grow – and therefore spread the working load – rapidly. However, this is rarely the best course of action. So, with that in mind, we advise what are the most common mistakes when growing a business, so you can avoid them.
1. Stepping away from the company’s core aims and values
Sometimes CEOs decide that growth should be an organisation’s primary ambition, but this should never be done if it is going to compromise the business’ core values. Don’t step away from the objectives and principles that helped you build your audience in the first place.
2. Not understanding roles and responsibilities
Growing a business tends to involve hiring new staff, expanding operations, and increasing spend. However, if this is not done correctly, it could end up being incredibly costly. It is essential that you only hire employees if they are truly necessary; remember, it could be the case that a current employee, who already has knowledge of the company, will be best suited to taking on new or expanded tasks.
Promoting a current member of staff and giving them a pay rise will also be far more economical than hiring a completely new employee who has to learn the ropes.
3. Trying to expand too fast
The old saying “slow and steady wins the race” is just as true now as when it was first coined. Building an audience organically, and only growing when demand makes it viable, is absolutely crucial. Trying to grow too quickly will likely only lead to financial difficulties.
4. Failing to read the market
If you’re going to expand, or are contemplating adding new products or services to your business’ repertoire, make sure that there is actually demand for your new items. Have you done your market research? Have you spoken to your audience? Have you seen what rival companies are doing, and are there lessons you can learn from their activities?
Remember that when growing a business, you should not make any decisions lightly. Consider all available options, and only take the plunge once you’ve made all of the appropriate enquiries.
Common mistakes when growing a business – where to find out more
If you’d like to expand your business, but need help with finance, please get in touch, we can help.
To find out more about the business expansion finance we can help with, please visit our Alternative Finance page.
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