As a business expands, different problems and opportunities demand different solutions: what worked for a particular year ago might be the best approach. All too often, avoidable mistakes were transforming what could have been a big deal into one also-ran.
Crucially, you need to ensure that the choice you take today does not generate additional problems for the future. Practical leadership will help you make the most of your opportunities, creating sustainable expansion for the future.
This article points out the particular risks and mistakes that most commonly affect start-ups and growing businesses and describes what you can do about them:
- Keep up with the market
- Problem solving
If you want to read about additional risks and mistakes, you might like the following article: Skills and Attitudes: Why are They a Common Challenge in a Growing Business
Keeping up with the market
Market research is not something you do only when you launch your business. Your start-ups conditions will change incessantly, so your market analysis should be incessant as well. If not, you have to bear the risk of making business choices based on obsolete information, which can lead to a commercial failure.
The competitors will notice you the more you succeed, and have a – reaction –to what you are doing. A market leading offer one day may not be better than average a few months afterwards.
Additionally, faithful customers can also be quick to find alternate providers that offer a better deal.
As products and services age with time; the sales expansion and profit margins get shortened. Acknowledging where your products are in their life cycles can help you figure out how to maximize overall lucrativeness. At the same time, it is necessary to invest in innovation to build a flow of profitable new products to the market.
Start-ups usually run in constant crisis mode. Each day brings new challenges that need to be solved urgently, and the administration spends most of its time in solving problems.
As your business expands, this approach simply does not work. While a short-term crisis is always urgent, it may not matter nearly as much as other things you should be doing. It might help to protect one relationship to spend time to calm an irritated client, but concentrating on recruiting the right salesperson could lay the groundwork for substantial new sales for many years.
You need to be aware to new problems and priorities as your business expands. For example, your business could be increasingly at risk unless you take steps to ensure that your intellectual property is adequately protected.
If you are converging on separate marketing campaigns, you may need to devote more resources to developing your brand.
Identifying the primary drivers of expansion is an excellent way to understand what to spotlight. A disciplined approach to management emphasizes on key employees, developing their management team and building their business strategy. Instead of handling each problem as a one-time, you cultivate systems and structures that make it easier to manage in the future.