According to the Bureau of Labor Statistics, 50 percent of all small businesses misfire within the first four years of setting sail. While there are numerous causes to consider, such as business owners’ ineptness, fraud, and neglect, the most common cause often goes unnoticed: stagnation. The short period of rising profits and returns ends too soon for such companies, leading to a plateau with limited growth and innovation.
To put this in simpler words, if your business is working round the clock but isn’t bringing in enough money, consider the possibility of elevating your business without working long hours. The good news is that a stagnant company can undergo a transition to flip the script, stimulate changes and re-energize the growth engine. And you must do this before a myopic approach results in your business’s eventual demise. For that, the following eight tips will assist you:
Know where you stand
First, get a sense of where you are currently at as a business owner. This makes the journey far more meaningful. What is your team’s highest energy level? Did you have a bad day? How about a medium day? What is today? You will know what you can do to move ahead and overcome business shortcomings. Answer all these questions before you begin strategizing for growth. You may have to reshape your business vision and objectives accordingly.
Sometimes the lack of additional know-how can be a hurdle in your business’s growth. The easy way to go about this is by hiring skilled resources. However, in a period of stunted growth, that might not be an option. So why not upskill yourself?
Consider how you can gain more value without having to spend a lot of time. For instance, you can increase your business acumen by enrolling in an online executive MBA instead of a full-time on-campus program. This way, you’ll be able to work with a flexible schedule and apply your learnings to give your business the boost it needs.
Wear many hats
And if you’re upskilling, you might as well consider this too! While encouraging high performance from your team is crucial, it is also necessary for small business owners to be able to adjust to their employees’ thinking styles for cultivating versatile work skills. Successful leaders are:
- Analyzers, who only search for facts by putting their personal feelings aside
- Synthesizers, big picture thinkers who propose ideas, solutions, and opportunities
- Professional organizers who handle and manage projects effectively
- Harmonizers who are constantly helping people to get along.
Business owners must be able to play at least one if not all four types of roles to create a high-performance company culture that drives results. Only by being an effective leader who performs in multiple dimensions will you be able to pull their sinking ship out of deep waters.
Celebrate small wins daily
Be happy with what you have. Engage your team with fun activities to build a stronger bond with them in challenging times. Stagnation can lead to uncertainty, and you need to address this before you start losing talent from your company.
Demotivated and disengaged employees are more likely to jump ship, leaving you in more trouble. Therefore, celebrate your victories no matter how big, or small they are as you strive to re-energize your business daily.
Strengthen business connections
Keep your business open to the community. Get started by giving time and energy to volunteer work on various non-profit boards and committees. In some cases, an organization’s activities open the door for newer opportunities, help project a positive image for the business, and generate excellent publicity. All of these can revive the company’s financial position and prevent it from shutting down completely.
Resolve workplace conflicts
It would be best if you remembered that everyone is watching how you, as a leader, will act. Suppose you take a “wait and see” approach or hope that a situation will simply pass. In that case, you are merely contributing to a toxic work environment. It will only reduce high performers to drag down and underperform. Therefore, deal with unavoidable workplace conflicts to maintain a healthy company climate, work ethic, and increased productivity levels in periods of reduced growth.
Grow your team in a careful, deliberate manner
Instead of expanding your team by spending too much money, spend zero on recruiting and still get the best candidates in the first place. Introduce a commission-only proposal to your sales team. The right seller can play such a vital role, and until they have reached sales targets, you have to pay nothing extra. It is a tactic many business owners overlook. Still, it can help many companies increase sales without taking a high financial risk.
Stagnation can compromise your market position and profitability if you don’t act fast. This article mentioned a few tips on how to re-energize your business without making significant financial investments. Start by understanding where you currently stand as a business owner. Upskill, lead by wearing multiple hats, celebrate all your wins, and continue to build strong business connections.
Growth plans that help your company thrive without curtailing profits result in healthy revenue, happy employees, and a prosperous tomorrow. Unlock faster growth and increase your chance of success with better planning today.