Ways To Navigate The First Stage Of Small-Business Growth

This article I bumped into will surely help you “Ways To Navigate The First Stage Of Small-Business Growth”

If you ask most entrepreneurs, they’ll say starting a business is a lot like a roller coaster — equal parts exciting and terrifying. I know it was when I started my company nearly 20 years ago. Over the years, I’ve had the opportunity to observe countless small businesses, and I’ve learned there are certain stages that each business goes through. Each stage brings different challenges that can impede growth.

This led my company to examine these stages of growth in depth. We’ve defined five stages based on revenue and employee ranges, so entrepreneurs can quickly identify which stage their business is in, the hurdles they’re likely to face and ways to overcome them to move to the next level. So, what does stage one look like?

Most commonly, a business categorised as stage one has sales averaging $4,000 to $10,000 per month and no additional employees. Many small businesses fall in this category, so take comfort knowing you’re in good company if this describes your business. These solopreneurs face four distinct challenges. Let’s examine them and the steps anyone at this stage can take to address them.

1. Coping With A Lack Of Time

At this stage, many entrepreneurs are working a day job, and their business venture is often still a side hustle. In addition to 40-plus-hour work weeks, they’re managing every facet of their new venture — from customer service and sales to accounting and taking out the trash. There never seems to be enough hours in the day to get everything done.

Compounding the problem is that most business owners starting out don’t have a streamlined method or system to get — and stay — organised. If you don’t have a system, things will start to slip through the cracks despite your best efforts, and it will be difficult to grow successfully. Tools that automate manual and repetitive processes for the day-to-day tasks that can bog you down, like invoicing, scheduling and follow-ups, can help free valuable time to focus more on the activities that fuel growth.

2. Staying True To the Core Purpose

My advice to anyone just starting out is to stay true to the core purpose of your business. This can be especially difficult when the priority is just keeping the lights on. I should know because that was me. I remember in the early years, we were just a couple of techy guys who wanted to keep working for ourselves, so we took anything and everything we could to make a buck.

I quickly learned the key to long-term success was being intentional about why we were in business. When starting out, it’s vital for owners to find their purpose because it will have a significant impact on the business as it grows. Entrepreneurs need to ask, “Why does this business exist? Why does the world need this product or service?” Whatever the reason, it’s critical to get clarity on it. It will help you ignore the things that divert attention away from activities that move your business to the next level.

3. Generating Leads

One of the toughest issues for entrepreneurs just starting out is a lack of leads. At this initial stage, most businesses likely have a handful of clients and the occasional word-of-mouth referral, but, by and large, there isn’t a consistent stream of leads. To grow from this first stage, it’s critical to learn how to cultivate leads and move them through the funnel.

Although strategies for acquiring leads will vary for each business, nurturing every lead a business identifies is critical at this stage. Automation can help capture lead information like behavior, preferences and the likeliness to buy, as well as conduct outreach based on a customer’s action to efficiently move them through the funnel.

According to my own company’s research, 44% of potential clients move on to another company if a business doesn’t respond fast enough. And other research results suggest that 60% of potential buyers think even one minute is too long to wait on hold. Automation tools can trigger text and email follow-ups to potential clients as soon as they fill out a form on your website or request more information. Quick client follow-up can drive repeat sales and more referrals.

4. Dealing With Loneliness

Going it alone can be, well, lonely. Even family and close friends may find it difficult to understand why an entrepreneur is pouring every ounce of energy into a project. Couple the lack of time to cultivate those relationships with the financial stakes, and it can be a recipe for disaster. I honestly don’t believe there’s any way to avoid it completely, but I do believe it’s important to learn how to trust your decision to go into business. That said, it’s critical to recognise the signs that you’re not okay and surround yourself with resources to help you deal with the mental challenges of going out on your own.

Finding other entrepreneurs that can listen and support you is valuable because they know firsthand what small business owners go through. Joining a group like Entrepreneurs Organisation or Young Entrepreneur Council provides a place for members to meet like-minded individuals and hold each other accountable. Find friends and family to be open and honest with regarding the struggles you’re facing. Perhaps most importantly, albeit sometimes the most difficult, is to check in with yourself on a regular basis. Make it a priority to step back and recharge because nurturing what makes you happy will have a positive impact — both at home and on the job.

Making the decision to go out on your own isn’t always an easy one. For some, it’s the culmination of a lifelong dream, but for others, it may have been born from sheer desperation. Whichever camp you fall into, you’re not alone. There are countless challenges that you’ll face as your business grows, and you may even face some of these initial challenges again at another stage. Understanding what the pitfalls are and the resources that exist to help you address them is the first step to positioning your startup for long-term success.

Want to know more? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on 0467 749 378.

Thanks,

Robert