Five reasons why your small business has stopped growing

Reading Time: 5 minutes

Every entrepreneur and business owner works towards business growth. However, sometimes, even with a great product, service, and solid customer base, you may still find your numbers have not changed in the last 12 months, and the business is stagnating. 

You know the saying “Knowledge is power”. Well, the performance of your business reflects the decisions you make based on your industry awareness and expertise. So, for your business to grow, you must do the same. After all, you will not be able to benefit your business from your knowledge or insight if you do not have any experience to draw upon.

Growth and leadership go hand in hand! Companies that grow have solid and inspirational leaders at the helm. Leaders that inspire and encourage their staff have low employee and customer turnover. Therefore, they have more significant growth and profitability.

There could be several factors at play preventing your business from reaching its true success. Here are five reasons why your small business may have stopped growing and how you can quickly turn things around with a solid business plan.

You have lowered your expectations

Most entrepreneurs who start a business do so because they have big dreams and ambitions. They also have lots of enthusiasm and believe that their business will grow from something they started from their bedroom in their spare time to something huge. 

But then, after the realities of running a company start to kick in, the daily grind can distract from the initial ambitions and excitement of growing the business. So instead, the job becomes simply about keeping the business afloat rather than growing it.

Fixing this problem will take lots of energy on your part – try to remember the growth plans you originally dreamed of and set new and bigger goals to work towards. 

Our tip:  Look at establishing mutually beneficial relationships with other business entities or influencers etc to unlock new avenues of growth that otherwise would not be possible.

You are still doing everything yourself

When you first started your business, you had to do everything yourself because you did not have the money to hire anybody else. But if you want to see your small business grow into something bigger, you will have to look at investing in staff.

By doing the work yourself, you fail to make the best use of your time. You might think, “I don’t have enough money to hire help.” However, you do need to take a risk and get assistance from someone who can free you up from day-to-day duties so you can grow your company.” Without enough staff to support you, you will remain stuck.

Our tip:  Consider hiring a freelancer or consultant to do certain jobs might cost you in the short term, but it could lead to higher profits and a quicker rate of business growth in the long term.

Too much price dropping

When attempting to grow a business, it is often tempting to try the easy option of offering low prices to attract more customers. But the problem with this is it lowers your profit margins, and since people can use Google to compare prices in seconds, it will only work if you are cheaper than all of your competitors, which is very unlikely to be the case.

Our tip: Instead of lowering your prices, look at ways you can add value to your product or service so you can justify higher prices. You will start to see higher profit margins and a quicker uptick in business growth.

You are exactly the same as your competition

You are exactly the same as your competition

It is well known that to be successful in business; you need to stand out from the crowd and show customers that you offer something different from your competitors. The only way to do this is to do things differently.

It could be by offering a product or service not provided by your competitors or offering the same services in a new, better way leading to more customers, a more considerable profit margin, and business growth. Still, it can be easy to get comfortable with how your business is operating and stop trying to differentiate yourself. The problem with this attitude is that your potential customers will have.

Ask yourself this question: “How can we be different from our competitors?” If you are struggling to come up with an answer, then you have just uncovered a significant reason why you are not growing!

Our tip: Take time to consider the question and come up with the answer and then communicate it to your staff so everyone is on the same page to drive your business forward.

Update and adapt your business plan

Update and adapt your business plan

One of the first pieces of advice most entrepreneurs receive when they want to start their own small business is to write a business plan – and that is because a business plan is beneficial. But there is one problem: what you write on paper is rarely the same as what happens in your day-to-day running of the business.

Operating without a written plan is a prescription for maintaining the status quo, or worse.  A lack of planning is your competitor’s best friend — and a primary reason for growth stagnation. Whilst your competition is projecting, analysing, and preparing, you are worrying and figuring out what went wrong and why.

You should adapt your business plans to fit the current situation because what you planned initially may not always work later on as customer tastes change, new technology is developed, or the economy changes.

Our tip:  If you have been running your business for a while but you are still using your original plan, update it to reflect the current climate – this should set you on a path to a quicker business growth rate. Focus on good public relations and customer reviews. All of these things will help your business grow and reach its potential.

Small business planning that drives growth – Our business plan service

I hope you have found our tips really useful.

Are you starting a new business or expanding your business due to continued growth? With three decades of experience working with small business owners, we are passionate about helping businesses thrive! Your highly qualified plan writer will prepare a bespoke business plan filled with valuable financial information and straightforward strategy advice to make the idea become a reality, achieve your goals, or maximise revenues – a road map to your future!

If you are looking for a professional business plan, then talk to us today on 020 8577 0200 or schedule a call instead.