Major reasons lot of businesses stay small

Posted on Posted in Website Design

Every Entrepreneur needs his/her business to grow. No one wants to remain small. But we must know that there are numerous factors that makes small businesses stay small. It could be that the owners do not have an idea on how to expand, perhaps, there are too much competition in the area of localization or as a result of the market being saturated. It could also be that the owners failed to do their homework well ahead of time. Below are the major reasons some businesses remain small

  1. Not putting yourself out there: To be modest is an admirable quality, but you need to push it a little in business. If you take your business for granted or should I say if you downplay your business, others will definitely do same to it. You need to be proud of whatever business you do and be ready to let everyone around you know about it. That is to say that you need to sing praise of your business at all times. Getting people talking is how to encourage word of mouth sales. Chat with people you meet everywhere. And don’t forget social media. You can instantly connect with potential clients/customers in a major way.
  2. Not knowing where you are heading to: You need to have a bigger picture of your business. Don’t just focus on the day to day running of your business. Where do you see your business in the future? Do you want to branch into other areas of service or products? You need to visualise what you want. And, here’s the biggie…write it down. Make your plan as clear as day. Create the steps you are going to take to get there. “The essence of strategy is choosing what not to do.” Says Michael E. Porter. If you don’t have a vision, how are you ever going to change what you are doing? If you don’t have steps to take, you will be floundering around in the dark. So, take a few days just to brainstorm where you are going and how you’re going to get there.
  3. Wasting time on tasks that are of less importance: Now that you know where you’re heading to, think about your daily priorities. Many tasks get flung in your direction as a business owner. The easy thing is to spend a lot of time being busy on tasks. But busy does not mean productive. It is crucial not to waste your time on tasks that are less important. Some tasks feel urgent, because of a deadline. Are these tasks actually important? Review your “bigger picture” plan. Ask yourself if the task on your to do list will move your business toward the bigger picture. If not, scrap it or delegate it.
  4. Fear based pricing: Pricing is just as much an art as a science. The wrong price can hurt your sales short-term and it will put you out of business. You may have started your business thinking you should keep charges low so people will buy. The truth is that when you declare the value of a product or service, that is the value people believe it has. Be open to upping your prices. You have more experience now and know how to provide good service. Why not reflect that in your prices? Don’t just study what you’ve been earning, project what you could be earning. Don’t avoid change out of fear, in pricing or anything else. Lack of change is another reason why businesses stay small.
  5. Working yourself to death: The final reason why businesses stay small is that entrepreneurs often think they have to do it all. In the beginning it’s a rush to be doing your own thing and you will find yourself working (or thinking about working) all the time. But this is not sustainable. On an airplane you are told to place an oxygen mask over your face before helping others. In business, you have to look after yourself first, too. Only then will you maintain your health and sanity enough to push your business to the next level. Don’t forget about delegation. There are writers, accountants, and virtual assistants readily available online 24-7. You should be thinking about outsourcing tasks or passing them on to your staff at all times.
  6. Incorrect amount of risk: There are two kinds of risk in business. Both of them are dangerous for different reasons. There are business founders who take on too little risk. They invest too little time or money, and they never quite reach their goals. There are entrepreneurs who take on too much risk. When you take on too much risk it might be impossible to recover.

Although there are a number of reasons why small businesses stay small, they are easily avoided with a little bit of effort.