One common problem business owners face is growth stagnation. This is when a business stops growing or faces obstacles to continued growth. When business stagnation occurs, the owner or leadership must reevaluate the operations to determine the source of the problem. A lack of growth may occur for many different reasons.
Common Reasons for Stagnant Business Growth
- Lack of funds to expand
- Failure to create a business plan
- Ineffective marketing
- Product in decline at the end of its lifecycle
- Incorrect forecasting
- Lack of delegation
- Poor management
Regardless of the reasons for slowed growth, it’s critical to take steps to repair the problem and create new opportunities for growth.
Steps to Create Business Growth
1 – Evaluate Your Business Plan
Is your business plan outdated? Or, did you fail to create a business plan from the start? If so, it’s time to update the plan for your business. Look at the areas that are no longer working to determine what parts of the plan need to change.
For example, did you fail to expand your product line according to the plan? In this case, while your marketing may continue to attract attention, your products may no longer meet the clients’ needs. Your business plan is important throughout the life of your business, not just at the start.
2 – Ask for Feedback
Most of the time employees, customers and vendors don’t offer feedback unless you ask. One of the best ways to keep your finger on the pulse of your business is by regularly checking in with your team and customers.
For feedback to work, you must receive it without criticism, excuses or retribution. Remember, negative feedback points out opportunities to grow. If your customer service is bad, make improvements. If your team doesn’t understand their job functions, offer training. Overall, feedback gives insight into where your business needs corrections.
3 – Build a Better Team and Delegate
As a business owner, you cannot do it all! One question every business owner should ask themselves is whether they have a business or a job. If your business could not continue to run without you, then it’s a job. A true business has a value and can continue to function in the owner’s absence.
Build a team you trust. This is key to create balance for both your business and your life. When you become burned out or try to do it all, your business cannot grow. This is because you have limits. Your business’s growth will become stagnant when you reach those limits. Instead, invest in the right team to create growth opportunities.
4 – Partner with a Business Advisor
Take the time to partner with a business advisor or business coach. Their unbiased, outside view offers a true look at your business’s finances, operations, team, and products or services. Business coaching is a great way to update or create a strategic action plan to move your business forward.
In addition, business valuation provides a view of what your business is worth. When you know your business’s value, you’re able to make better decisions about the future of the business. Get the help you need to create a better path for your business and your life.
Contact Alliance Business Coaching
At Alliance Business Coaching, we work with business owners and executives to evaluate you and your business. We offer several options for business coaching as well as business valuation. Contact us today to discuss which program and strategy is best for you.