You did it! You started your own business and, so far, things are going according to plan. Of course, there’ve been some surprises along the way, but nothing you couldn’t handle.
Now, let’s fast forward a few years. Business is good, but maybe not as good as you’d hoped, and your numbers are plateauing. You wonder, “How many new businesses face this challenge?”
According to the recently released 2015 Sage State of the Startup survey, which talked to more than 500 new business founders, plus 100 senior executives at companies that routinely nurture new businesses, growing revenue and acquiring new customers are some of the hardest things to do as a small business.
From the perspective of advisors who council and invest in startups, some of the main challenges for these businesses are 1) taking on too much debt, 2) underestimating the impact of marketing, 3) producing accurate financials, 4) and not performing enough market research.
Whether you’ve just gotten started, or have reached a point where your business is steady but at risk of becoming stagnant, here are eight ways to take your business to the next level.
- Be flexible. Running a business can be thrilling, yet overwhelming and challenging. As the owner, it can be difficult to be nimble and make adjustments along the way. However, small businesses must adapt to changes and maintain flexibility in order to thrive and grow.
- Conduct research ... and then conduct some more. Ask questions about (and to!) your target customers. Analyze your competitors. Investigate current trends. Never stop learning. The only constant is change, so you’ve got to stay on top of the latest market and industry data to keep your company fresh and innovative.
- When it comes to marketing, you don’t have to do it all -- but you’ve got to do it. Marketing is no longer a one-way communications channel. You can choose the channels that make the most sense for your business, but you’ve really got to choose some type of social media channel. Platforms like Twitter, Instagram, LinkedIn, and Facebook aren’t likely to go away any time soon, and they’re a great way to engage directly with your customers and prospects. According to the survey, Boomers were 2.4 times as likely to ignore social media marketing tactics as Millennials.
- Avoid debt. This may seem obvious, but many entrepreneurs get so caught up in turning their passion into a business that they don’t control their costs closely enough and end up taking on too much debt.
- Network like crazy. Take any opportunity to attend events and workshops to increase your knowledge, be inspired and motivated, discuss new concepts, and exchange ideas with peers. From taking contacts to lunch and face-to-face meetings to new tools like LinkedIn and Facebook, they are all important in the world of networking.
- Get your numerical ducks in a row. Strive to produce accurate financial statements. According to the State of the Startup survey, 36 percent of nurturers have low trust in the financial statements of new businesses; 79 percent advise using an accountant and purchasing high-quality software to help.
- Connect with your customers. To foster relationships with your customers, you have to make personal connections. While social media, the internet, and technology are truly great, nothing beats face-to-face communications. Make time to meet with your customers on a 1:1 basis. When it comes down to it, people often choose to do business with companies based on the people they know and like.
- Apply customer feedback. Collect feedback with each initiative. Find out what works and what doesn’t. And be agile. If you’re asking for real-time feedback, use it. Don’t just ask people what they think without actually doing something about it. Make sure you’re also adapting to what you’re learning from the feedback and following through on your promises.
