Business growth is every small business owner’s dream. You put in the time, effort, and risk to start your own business, so it follows that you want to see it succeed. An expanding business offers obstacles to overcome for continual success. Complacency is the enemy of entrepreneurs. Don’t let your business growth stall due to lack of preparation. Here are five challenges to consider when you’re running a growing business.
Don’t let the influx of clients and sales distract your business from your core mission. Stick to your vision and cater to your target market, even while looking to expand into new markets. If your industry is prone to disruption, don’t just tolerate it, embrace it. Market research isn’t a one-and-done endeavor. Ensure your staff is ready for market trends and shifting needs by keeping up with your market research. Keep in contact with your current customers and listen to feedback. Take notice of your competitors and set your prices with a balance of competition and healthy profit margins.
Does your business already involve a full-time IT department? If your business relies on technology to function, your IT needs will expand quicker than you realize. Cloud based services can ease the time and effort of managing a server in-house. A digital revolution may be necessary to sustain the size of your business without diverting your time and resources. Be sure to evaluate whether the technology you’re implementing will be beneficial in the long-run or whether it’s just a passing fad, and don’t sacrifice customer service for mild convenience.
Cater to Your Customers
Providing good customer service goes a long way to maintain repeat customers. These repeat customers can offer your business referrals to new clients. Referrals from established clients that believe in the services or products you offer are an easier way to expand your business than blindly fishing for new customers. Create a dialogue with your customers and ensure you are meeting their needs. Lower prices from your competition can be attractive, but strong customer service can stave off competitors and maximize the loyalty of your clients.
Cash Flow Crunch
With business growth, you can expect an increase in daily business costs. Aging accounts receivable, a growing staff, larger supply purchases, and an increase in overhead costs can create quite the cash flow crunch. 82% of failed businesses cite cash flow problems as a cause. Know that strained cash flow goes hand in hand with business growth. The best way to prepare for this is to secure a funding source early. Small business loans are a great option if you have the credit score, time in business, and patience for the approval process. Selling your accounts receivable to a factoring company is a debt-free method of financing your business that grows alongside your sales. There is no risk of reaching the end of your line of credit. Don’t wait until it’s too late to find the right lender for your business or you may be facing high interest rates, unfavorable repayment terms, and insufficient amounts of funding.
Find the Right People
Don’t wait until the last minute to build your staff if your sales are consistently over-performing. You need to trust your employees to carry-out your company’s vision. Hire the right people and delegate appropriately to maintain business growth. Ideal employees are capable of the task at hand and mesh with your company culture. Give yourself enough time to choose the right fit for your business. The average cost of employee turnover is between $3,000 and $18,000. Save the time and money by hiring the best candidate the first time around.
Working Capital Funding
An expanding business is an exciting and stressful time for any business owner. Don’t let your available working capital hold you back from accepting more clients or expanding into new markets. Whether you are prepared for business growth or not, invoice factoring can support and grow with your business. Eagle Business Credit serves growing businesses across the country, helping small business owners achieve their dreams.