BLOG - Why Businesses Stop Growing - Part 2

Continued from Part 1 

Staff and resource levels have been increased to serve the growing customer base, increasing costs and tying up director time. The owners themselves come under increasing time pressure, being torn between customer, staff and business needs. Falling service levels and rising costs see the growth constricted and dissatisfaction around the business grows in its place.

Have you ever heard yourself or a colleague say, “This was so much easier in the early days!”

Now the owners find themselves at point C. Right now, you are likely to be at some point between A and C.

Reality has dawned and the business is at a crossroads.

Do you remain a personality-driven business and attempt to claw your way back to point A by downsizing, culling customers and laying off staff and try and raise point A to a higher point?

Or, do you undertake the investment (mostly in time and effort) required to move forward and become a systems-based business at point C. I guess as you’re taking this course, it’s highly likely this is what you want to achieve.

Interestingly both types of business can be successful with the right planning and management. But, too many businesses find themselves falling into the trough in between simply because they’ve didn’t consider early enough what their fundamental strategies and goals should be.

Instead emphasis is placed on the process functions of the business like, delivering the product or service and support to customers and essential marketing and management of the business is overlooked. Growth, consequently, is limited.

Let’s look then at the high-level view of your business (which can be any business). As I mentioned earlier, it has three key components…

1. Process

The mechanics by which any business ‘produces’ its saleable products or services. This is how you generate income.

2. Marketing

The generation of new customers, the retention of existing customers and the maximisation of customer value. This is how you acquire and retain customers and this course focuses on this particular component.

3. Management

The running of the business – its performance management, strategies and goals as well as the financial management of your business (where we come in!). This is where you generate profit and wealth. 

So how do these components work together and how can they help your business?  Find out next month in Part 3!