In today’s world of social media networking and branding, there’s a perception that if a company grows fast (or looks like it’s growing fast) it means everything is going right. Continuous growth is the ultimate goal for all companies, but even if companies appear to be successful there’s no real recipe for it.
Companies on every block are looking for ways to keep business growing, but there are hiccups that can occur. Small businesses, for instance, are vulnerable to certain factors that can negatively affect their index. But even CEO’s of larger companies can attest to the struggles of keeping growth consistent.
Here are some things that always find a way to hinder business growth for companies of all sizes.
1. No Business Plan
Companies need a vision from the start. If a company has been around for a while they need to refresh that business vision from time to time. Growth requires increased production, staffing, marketing, and other duties related to expansion. On top of annual budgets, companies need to develop growth plans for two- or three-year checkpoints an address needs like production, overhead, labor needs and marketing, for example.
2. Poor Marketing
Stemming off the previous point, operating, or trying to operate, without a formal marketing training plan can hinder growth. Marketing begins with activities such as product development, researching and analyzing the marketplace, building a targeted customer profile, pricing strategies, and more. Having these in place to build off of is a good start to go beyond what people think marketing is today: branding and advertising.
The old adage of “You have to spend money to make money” is still true, but in some cases companies can take it too far. The more money you spend on marketing opens you up to more sales that can be generated. With more sales means more money back in the business account. But having a lack of cost controls can lead you to a dip in profits to put back into marketing efforts, which can negatively affect future business or expenditures on things like IT or accounting.
4. Product Line Stagnation
Companies that offer certain products and see growth in those products can actually end up saturating the market overall. Selling the same products or offering the same services can make your consumers grow tired, unless you’re a company like In-n-Out Burger. There may be steady growth and small blips in business growth, but exponential growth won’t occur if you don’t begin to step out and offer new services or products. This can be done by not only tapping into market trends, but by seeing what your customers’ needs are and listening to their feedback.
5. No Insurance
It doesn’t matter if it’s a small startup or a multinational corporation: any business can be hit with claims. Depending on the severity of the claim and the business’s response, all it takes is one claim to halt a business’s upward momentum or, in worse cases, shut the business down entirely. Every business should have substantial insurance coverage to safeguard them against their biggest liabilities. For Carmel small businesses, a Business Owners Policy (BOP) is a great option for comprehensive yet cost-effective coverage.
About Walker & Associates
If you’re in the market for a new insurance partner, do your homework to ensure a lucrative venture and positive relationship. Contact us online at Walker & Associates Insurance or by phone at (800) 213-7126 for your insurance needs. We can explain your coverage options and how much coverage will cost.