5 Reasons Your Business Isn’t Growing

BradYoung04 By BradYoung04, 16th Sep 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/1g7vqi4c/
Posted in Wikinut>Business>Accounting & Finance

Here are 5 reasons why your business might have stopped growing

5 Reasons Your Business Isn’t Growing

You may have a good stream of customers and a good product, but it is a surprisingly common problem for businesses to find that their revenue remains the same year after year. Of course every business is a little different but here are five of the most common reasons for businesses stagnating and what you can do about it.

1. 1. Overdue payments

Whether your business has been established a long time or for just a short while, you are likely to have suffered problems with customer’s payment. Many people find it difficult to approach those awkward conversations with clients but it is so vital to the smooth running of your business that you collect overdue payments. You could be worried about upsetting your relationship with a customer by reminding them of overdue payments. Not only is this an issue of customer relationship and experience it is also a time management issue as you will often spend quite a bit of time chasing people who are late paying, time in which you could have been doing something much more productive.
The best solution to save your time and to collect the payments which you are rightfully yours is to automate payment reminders once clients are past their payment date. In these automated reminders it is best to give your clients a couple of different options for the method of payment.
If customers do not pay repeatedly, or you are still chasing them for payments from a long time ago then you could consider taking them to a claims court or hiring a debt collection agency (depending on your claim one option will likely be more cost effective).

2. The right software

Every business needs the right tools in order to flourish. Making the right decision of exactly what you need and what is considered ‘nice to have’ can be the difference between saving time and money and tying up your funds in unnecessary flashy software.
If you’re unsure that you are currently using the best software for your business both in functionality and cost, then take an audit of your software. Try some demos of other software on the market and compare what you are getting for your money and what business functions the software you use is actually performing.
One of the biggest problems faced by new businesses is often cash flow problems. A business can have substantial incoming revenue, but if the cash flow isn’t good then the business can easily go under. With that being said, one of the first pieces of software that most businesses should invest in is budgeting software so that they ensure the proper monitoring of business finances.

3. Automation & integration

Following on nicely from software is the next common cause of stunted business growth: Lack of integration and automation. Manually performing common tasks like time tracking, calculating taxes and payments will not help your business grow. Put systems and software in place so that you can scale up when your business grows. Administrative tasks can bog you down and take up your time, so look for ways to invest in automating these first so you can spend your time where it is most valuable and grow your business!

4. Don’t go chasing waterfalls

It’s not surprising that a lot of companies are attracted to those big juicy clients, but chasing those large clients can prove very risky business. The time and energy which it takes in order to win and then retain big clients can be consuming to your business and then once they leave taking big checks with them you may have a lot of unused resources which are no longer financially viable. A smaller and steady client base is the safest bet to ensure a steady growth of your business without putting the entire business at risk.

5. Referrals – are you asking for them?

If you provide a great product or service people will want to review your business or refer you right? Well sometimes the answer is actually no. People have busy lives with a million different things to remember and even if your product is great, they can come away with the intention to review or refer you and then forget it when confronted with one of life’s many distractions. Referrals have always been important but reviews have become more important than ever. It is so important for your business to have a positive presence online and online reviews are a big part of this. Whatever platform is best suited to your business, you should have a good influx of positive reviews if you provide a good service. So ask people for feedback if you are on social media, if people give positive feedback on LinkedIn or Facebook this will stay on your page for all to see who visit. Additionally specific review sites like Yelp, TripAdvisor or Google+ can be a great platform to ask your customers to review you. Why not offer the customer a small incentive to review you?

Similarly, don’t feel like you shouldn’t ask for referrals from customers that you have a good relationship with. After all, you don’t ask, you don’t get. Once you’ve asked, if a customer seems to be putting a lot of referrals your way, why not offer that customer a commission or reward of some kind to show your appreciation.

Thanks For Reading

Thanks for reading, I hope this article has given you some ideas on how to kick-start a little business growth. Check out some of my other articles on Wikinut such To Outsource Or Not To Outsource That Is The Question and follow me on Twitter too.

Tags

Business, Business Management, Business Opportunities, Business Plan, Business Startup, Finance, Software

Meet the author

author avatar BradYoung04
I am a MBA grad who can transform your business. Follow me for straight talking insights into running successful businesses in a fast paced world. I am always working or surfing in the Californian sun

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