As all small business owners will tell you, setting up and being successful is a tough nut to crack. However, when you want to expand, it is another story entirely. Unless you already have a lot of investment or a loan, it can be tough to grow in an organic way. There are some common issues that stand in the way of all small business owners – and we’re going to reveal some of those for you today.
As we mentioned above, unless you have financial backing, it can be incredibly difficult to break out of your small business status. You need more customers, but to get them, you need more means of production. And, of course, that’s going to cost you money.
It’s a tight loop to get out of – but there are a few options available to you. First of all, look deep into your finances and identify areas that you can save money – an accountant will help you find some solutions.
Also, think about what you are spending your money on. Every penny should be put towards creating more opportunity – so it might be time to ditch those company nights out for a while.
It goes without saying that whenever production levels go up, you will need more people. You can’t serve twice as many customers with the same amount of staff, or your business will quickly become a customer service nightmare. However, you can’t afford to gamble with taking on too many full-time employees, as your costs can spiral out of control. The answer – in many cases – is one of two things.
First of all, think about taking on temporary staff on short-term contracts. They will get you through any rise in production, and if things don’t work out, you won’t have lots of full-timers to pay.
Secondly, outsource some of your work. Plenty of third party companies can give you what you need, and then you can forget about. You’ll be buying expertise with a set job price, and, again, you won’t have to worry about any other costs.
Our last point is just as important as the other two, as it can have a severe impact on your ability to produce the goods. When you hire more people – either full-time or temporary, they will need somewhere to work. But, are the costs involved in moving to a bigger office worth it? Not right now, that much is certain.
You don’t want to get tied into a long-term rental contract until you can guarantee success. So, think about some alternatives. You can expand your office space by renting used modular buildings, for example. Or, you could offer work-from-home opportunities to temporary employees.
There are solutions for businesses that make products, too. You could outsource the manufacturing of goods to a factory. They can help you meet the growing demand while avoiding the high costs of buying a new plant space yourself
So, there you have it – three of the most common issues you will have when growing your small business. Have you experienced any of these? If so, how did you deal with them? Let us know and join in with the conversation!