Running a small business enterprise isn’t easy, not in the least. There are so many things one has to oversee and with limited resources, managing everything at once often leads to disastrous outcomes. Mentioned below are the four top things which can keep your small business enterprise from growing:
1. Lack of Knowledge of the Industry or Lack of Experience in Operating a Business
Once you start running a small operation, you can feel the burden of a thousand responsibilities in an instant. There are just too many hats you have to wear in order to take care of the business. For example, you have to look after the marketing aspects of your business and manage your accounts, etc. On top of that, you have to evaluate the industry you are in. A considerable lack in experience and knowledge can only mean one thing for your business and that is making bad decisions which can keep your company from growing.
2. Entrepreneurial Exhilaration
Never ever get too excited about an idea. Oftentimes, young or relatively new entrepreneurs get a bit too excited when implementing new ideas without first identifying the potential costs and benefits of the idea. And a majority of the time, a rash decision to implement an idea takes them back to square one without accomplishing anything. Thus, it is important to understand and assess each idea’s limitations and benefits before putting your all on it.
3. Gathering all Eggs in a Single Basket
Clinging on to single clients or the sale of any single or limited products is not a good idea. You would see most small business are tied to or co-dependent on a single client or the sale of any one product, which leads to them only achieving a measly break even. And if that client goes to your competitor just because he’s offering a better price, then what can you do? Think about diversification as it is the only hedge you would need to protect your business against rainy days.
4. Bad Book & Recordkeeping
Not taking care of your financial records or not reviewing or updating them can lead to confusion and chaos. You can’t afford to mess with your financial records, but if you can’t maintain them properly, get someone who can.
So, there you go. These are the top 4 factors which can keep your business from growing.