Everyone who dreams to own their business always imagines it to be in its bigger and larger form. But to reach the pinnacle of your business, there is a long long journey involved which differs for every business and its owner.
Starting your business is indeed a daunting task, but most of the owners after forming a base for their business, start chasing the race of business growth and finds the opportunities for the expansion of the business. This is indeed not a bad action to be taken unless the scaling of business means an increase in the sales and profit amount and improved efficiency and performance of the business and its people with the increased operations.
But in the hurry of chasing this race and reaching a better position in the business, there are many mistakes that they make which gradually acts as a hindrance to their business growth. So let’s have a look at some of those mistakes that could obstruct the business growth of your scaling business.
Mismanagement of workload
Businesses tend to grow and work briskly when every action from its process to its delivery works in the sync. This synchronization of the work process is only possible if proper planning and management of the work are done with clearly defined priorities and work roles.
Your small company might have less number of people so the workloads and the delivery expectations from each of them will be clear and noticeable. But as you are planning to scale your business, the number of projects along with their delivery deadlines will increase and so is the workload on your team. Due to too much work coming in, most of the business owners fail to realize that it’s their team who have to give the outputs of their commitments and thus end overloading them with work and losing some of its loyal employees.
This mismanagement of workflow and the stress that the employees feel in order to deliver more than their capabilities will make them frustrated and this, in the end, will affect the work and its quality.
Know when to hire
The second mistake that the owners make is keeping the process of hiring undervalued. Managers and business owners should know about the need of the people based on the new projects that are coming in the business.
Plan in advance, don’t hire too early or too late, know what would be the company status and the need for the resources based on the signed project. Hiring the resources too early will waste their time as there would be no such specific fieldwork or project in hand that you could handover to them while delaying this process to the time when the project is already signed will overwhelm them with the workload as soon as they join as the deadlines and the sudden work pressure will make them easily frustrated.
Know the right time to hire, such that you can provide them with some time to get trained and research about the project that you are going to assign them so that they get ready with their ideas to easily get the work done. Doing this will help you plan better and make the growth process swift.
Poor cash flow management
Any business owner can only think about business growth if he/she has enough money to invest in the expansion process. But as most of the new-gen find it hard to save money due to the added expenses of luxury which they find important, the scope of the earned money to reinvest for the other business process reduces.
The next mistake that business owners make at the time of the expansion is the management of the money, the wrong balance between cash inflow and out-flow can adversely affect business growth. Make sure your expenses are not exceeding your profit amount. Your new investors and the prospect leads might take this factor into consideration as they are signing with you the new agreements of work.
Scaling too early
The last and the most common mistake that most of the newbie business owners make is not knowing when to scale up the business and grab the opportunity.
As they say, opportunities don’t knock your door twice, so as a business owner you have to be very active about the time you see a new business prospect coming in and most importantly decide whether it’s worth taking the step or not. Its seen that many businessmen are actually not aware of the right time to take the step and get a great fall in their business while rushing the process of success.
So be very alert and cautious about the actions you make, take intelligent and measured steps to achieve what you want.
Taking your business to the next level requires your great attention and time. There are many areas that business owners miss to take care of while they are busy building new infrastructures and business opportunities.
Be careful while you make new partnerships and collaborations, focus on the core values of your business as once you are diverted from it the chances of making mistakes and taking wrong decisions increases.
Scale-up your business, but also consider the other factors that are connected with these changes. The above points are just a highlight of the actual case scenario but could help you fill the gaps while you plan to boost your business to increase your overall revenue.
James Vargas is an experienced business expert, consultant, and manager at Get Everything Delivered, business consulting services. With the 1.5-decade corporate experience, he is now sharing his guidance to start-ups to grow with corporate team building activities and project delivery solutions.
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