Business growth is one of the most common objectives once some stability has been achieved in the business. However, in this process there are a series of errors that can be avoided. Below, we list some of the most important ones, strategies to prevent them and that can help better adapt to change.
1. Not having defined objectives
A business plan must present in detail the short, medium and long-term objectives of the organization, which must be based on the growth possibilities and resources that the company has at the moment.
2. Starting without a market study
It is estimated that 33% of SMEs in Mexico fail during the first year and only 35% manage to survive after five years of operation. Among the causes of the phenomenon, not understanding the needs of the market is one of the most important. And it is not possible to know the needs of potential clients without having carried out an adequate analysis and market study.
3. Lax recruitment processes
Something that hinders the growth of a company is the hiring of personnel with profiles that are not very related to the tasks that the job positions demand. This can occur due to the absence of clear criteria for the analysis of candidates, lack of validation of the data in each CV, or personnel that remains in the company, despite not delivering the expected results.
4. Personnel neglect
The growth process of a company is a powerful motivation for its managers, but we must not forget that before sharing it, the collaborators work to solve their needs. Hence, upon perceiving that they are not adequately remunerated or compensated, it is very possible that they leave the organization, generating new recruitment and training costs for the company.
5. Skip investment in digital marketing
The phrase “If you are not on the internet, you do not exist” has never been so true. But also, to be successful, the advertising you invest in must circulate through digital channels. In this sense, the essential thing for your products and services to reach more customers is to have a website and disseminate it on social networks.
6. Not responding to your clients’ needs
When the business has been in operation for some time and has a client base, a common mistake is to focus on attraction and leave aside the consumers you already have. In general, retaining current customers is cheaper than attracting new customers.
7. Lack of financing
Making decisions in accordance with a financial plan and measuring results, as well as being aware of the income, expenses and balance sheet of the business is key to its stability. Expansion may require an injection of additional resources through a tailored solution, such as that offered by so-called merchant cash advances (MCA).
8. Misuse of resources
Mixing personal finances with business finances is a mistake that could destabilize it, especially when you are responsible for managing financing resources with a view to business growth. For this reason, it is very important to evaluate the use that will be given to the financing resources, as well as the expenses incurred month by month.
At Pymes Capital we can offer you the financing or cash advance (MCA) alternative that best suits your projects. Contact us, make your request online to receive a response within a few hours and work from financial certainty in this process of adapting to change.