When you're in charge of a new business, no task is too small - but it can feel absolutely monumental if something goes wrong. A survey from the small business loan company Kabbage showed this when it found that 52 percent of small business owners put in 60 hours of work a week and often make personal sacrifices to help support their company. That being said, new owners need to be prepared for even the smallest barriers to growth.
Check out this list of issues companies frequently run into when trying to grow their business:
Leading barrier concerns for small business
Kabbage's research found that cash flow and capital are the leading concerns for businesses. Knowing how to manage your business' money is absolutely essential before you do anything else. Creating a budget with a payroll company is a good option so your can see exactly what areas you need to invest in.
Surrounding yourself with the right people is also a very common growth issue. SmartCompany Magazine interviewed startup expert Verne Harnish regarding the barriers to growth. He explained that business owners often make the mistake of looking to senior management for all their leadership purposes. Instead, they should be relying on the mid-level managers, as these are the people who are more than likely doing most of the grunt work for the business' growth. In order to help develop your employees, your business must be invested in their growth through training and mentor programs.
Of course, to work with the best people, your business first must hire the best people. Businesses should be actively recruiting in an attempt to bring in the best talent. If you can't afford full-time employees, your business can also look to contracting agreement.
Setting company goals and constant assessment of those goals is crucial to growth. Keeping an eye on the market and competitors will help give your business the competitive edge it needs to work in your industry. A good way to start is via a simple SWOT analysis. By identifying your company's strengths, weaknesses, opportunities and threats you actively monitor your risks and potential ways to differentiate yourself form the competition.
There is help for small business owners
While it appears that small businesses are happy with these opportunities, they should still be aware of the common barriers of growth their individual business could encounter. Working with PEO companies offers valuable insight into how businesses can tailor their plans based on their unique needs.