The 4 Issues Every Business Will Face During Expansion
When it comes to starting a business, there are things that come along that may hinder your growth from time to time. At the end of the day, taking a leap of faith and starting a business is an achievement that is hard to describe.
Take TSMC as an example. This company was founded in 1987 and worked its way up to be the world’s largest dedicated semiconductor foundry. This company had to work hard to get where it is today.
Although starting a business is a great step in the right direction, the larger challenge is maintaining it. Running a successful business means building a brand and hiring the right people. Here are four problems businesses large and small face when trying to grow and scale.
4 Problems Businesses Face
Money Management - It's all about having the right amount of cash flow to cover all of your bills. Even if you are building an online business, there are still costs that come along with maintaining it. To avoid emerging capital that puts pressure on either your life or business, small business owners should always be able to grab extra income to clean up cash reverses or be heavily capitalized. And even though it can be difficult to split your focus, some entrepreneurs work with the founder and grow their business at the same. Remember the money has to come from somewhere.
Many owners try to cut the cost down by taking on the work themselves. But hiring a professional to take over your business accounting and taxes can allow you to focus on more important things.
Client Dependence -It may sound detrimental to any business, but there are some companies whose one client makes up more than half of the income generated. This isn't a business, this is you doing independent contracting work for someone. It's important that diversity plays a part when it comes to your client base. Focusing all of your attention on the only client who brings in the majority of your revenue can result in a long term handicap.
Fatigue -No matter how passionate you are about your business, if you are spending hours working consistently, then you will eventually find that the work is wearing on you. The fear of having a stalling business is the main reason why people feel as if they have to stick around 24 hours a day. Fatigue is real, and it can lead to unstable decision making and abandonment. It's all about the need to find a pace.
Founder Dependence - You don't want to be the only person behind the scenes running the show. There are a lot of companies who are founder dependent. If you were to fall ill, would your business continue to generate revenue despite you being there? Most of the time when a business is founder dependent, it means that the owner doesn't know how to delegate responsibilities due to their inability to let go of decision making. Although it seems difficult, it's not.
An owner can easily give more control to partners and employees so that everyone is involved in the process. Compromising is important if you don't want to build a business that is solely dependent on the founder.
The Bottom Line
No matter what type of business you are running, when it comes to issues pertaining to the growth of your business, they usually outweigh the benefits. At some point, there are sacrifices that must be in order to move up the scale.
No matter what type of business you are running, when it comes to issues pertaining to the growth of your business, they usually outweigh the benefits. At some point, there are sacrifices that must be in order to move up the scale. Not addressing these few issues can hurt your brand as well as cause a loss in numbers.
Always take the time to consider every challenge that comes with building a small business. We have offered a few things to take into consideration as you continue to grow and scale your business. Understand that everything about your business is a team effort. Delegation is the number one key that will help your business thrive.
Competitive drive is the number one reason people want to start their own business. Be prepared to face challenges and tackle them one by one.