4 Common Growing Pains for Small Businesses
Small businesses often experience growing pains as they expand and try to take on new challenges. This can be a difficult time for business owners, who are trying to figure out how to manage their new growth while still keeping their original goals in mind. You have big dreams, but achieving them is another problem entirely.
Firstly, many business owners before you will tell you that scaling a business is hard, and it’s often filled with plenty of trial and error. When do you know you’re ready to scale? This is a difficult question with no easy answer. But if your business is starting to see consistent growth and you’re starting to feel the strain of trying to keep up with demand, then it might be time to start thinking about scaling.
However, hiring new employees is expensive, and training them can take up a lot of time and resources. You need to be absolutely sure that scaling is the right move for your business before taking the next step. Thankfully, outsourcing can transform the next step from a leap to a small jump; StraightSource can help to outsource various areas of the business to allow your small business the resources to expand.
When you first start, it can be easy to get complacent and think that you don’t have any competition. But as you start to grow, you’ll quickly realize that there are other businesses out there vying for the same customers and clients that you are. It’s important to stay ahead of the competition by offering something unique that they don’t, whether that’s a lower price point, better customer service, or a more innovative product.
How do you maintain company culture when the team is growing? Perhaps some workers are in another part of the country. It can be difficult to keep everyone on the same page and make sure that everyone feels like they are part of the company; simultaneously, you want to provide a universal service to customers.
One way to manage this is with a strong recruitment and onboarding process. By ensuring that everyone who joins the team is aware of the company’s values from the start, you can help to create a cohesive team that is working towards the same goal. Every so often, it can also be helpful to have a company-wide meeting (either in person or via video conference) to check in with everyone and see how they are doing.
Regardless of potential, all businesses need cash to function. When a small business is first starting, there is often not a lot of extra cash flow to work with. This can be a problem when unexpected expenses pop up or if there is a slow period in sales. In the past, many business owners have been forced to close their doors before they even have a chance to shine because of cash-flow problems.
One way to help alleviate this issue is to have a line of credit or some type of loan that can be used in case of an emergency. This way, you will have the funds available when you need them and can avoid using your personal credit or dipping into your savings. Another way to improve cash flow is to be aware of what expenses are coming up and plan for them ahead of time. This can be done by setting aside money each month in a separate account or creating a budget for your business expenses rather than waiting and determining that you don’t have enough funds.
Check out the infographic below for more tips on maintaining your business finances.
Infographic created by Clover, a restaurant POS system company