The rate and short time frame for many small businesses to fail probably isn’t something you’re thinking about at the start. So it may surprise you to know many of them are over within the first five years.
One of the reasons small businesses quickly fail is because they try to grow too fast. According to Zen Business:
A leading cause of business failure, overexpansion often happens when business owners confuse success with how fast they can expand their business.
How Do You Know if Your Small Business is Growing Too Fast?
- The work is getting ahead of you, and you can’t keep up and are often overwhelmed in your business.
- You are unable to hire people who can do the job correctly. You can’t find anyone to perform the tasks you do. (Or you’re afraid they can’t do them!)
- Your small business can’t keep up with the demand for your products or services.
- Unhappy customers are calling as you rush them with your products or services, and you’re giving them poor customer service.
- All you do is work in your business, day after day, hour after hour.
You may need to add on or learn the skills you need to run a business. Sometimes you’re not as prepared as you think!
You may need to add on or learn the skills you need to run a business.
You need to find balance in your life to run your small business effectively. via @biz_tipster #smallbusinessownerClick To TweetWhy Do You Grow Your Small Business Too Fast?
Many new small business owners are in love with their business and want to see it succeed no matter what. So much so that they may not only lose their business but their friends and family in the process.
That’s where balance comes in. You need to find balance in your life to run your small business effectively and also keep it in business for the long haul.
You need to find balance in your life to run your small business effectively. via @biz_tipster #smallbusinesstipsClick To TweetTips to Not Grow Your Small Business Too Fast
Perspective
Keep your small business in perspective. It is a means to an end. Of course, you want to help others, as that’s why most small businesses form. Small business owners find solutions to problems other people have, and that’s the basis of their companies. They want to help customers!
But you need to take care of yourself before you help others. Work-life balance is essential.
Hiring Others
Don’t be afraid to admit that you can’t do it all by yourself. It’s best to hire freelancers to try them out before hiring full-time or consider making one a partner.
The more you can replicate yourself, the more business your small business can do. Without that replication, your small business will not be able to thrive and grow.
However, you may want to keep your small business small and not hire out. The more you hire out, the more you pay out and need to watch the services and products produced. It’s a delicate balance to figure out!
Pricing
Don’t be afraid to raise your prices. Your best customers will stay with you. And, this also weeds out those that don’t appreciate your products or services.
Why keep them if they want the lowest price possible? Are they worth your time? Always remember, time=money.
Customers
Have you figured out how many customers you need to make a comfortable living from your small business? Once you reach that limit, what will you do? You need to have a plan in place.
You need to find balance in your life to run your small business effectively.
Either hire more people or farm out the work to another similar business – maybe for a referral fee.
Either hire more people or farm out the work to another similar business – maybe for a referral fee. #smallbusinesstips via @biz_tipsterClick To TweetHave a Plan To Not Grow Your Small Business Too Fast
Be sure to have a plan in place. Always keep ahead of the curve for your small business. Be ready to make a move at any time. Whether to let someone go or to hire a new person, you must prepare and stay ready.
Not only that, but pay attention to your expenses and incoming monies. Doing so helps guide your decisions going forward. Without a clear picture of income and expenses, and a plan to move ahead, you may not be able to go forward or hold steady, for that matter.
If you are unsure, take it slow. Slow and steady wins the race.
Have you grown your small business too fast or kept it to just a one-person solopreneur? We would love to hear from you in the comment section below.
Donna Merrill says
Hi Lisa,
It’s so true, one cannot be in a rush to grow their business. Indeed…slow and steady wins the race…
I learned that through trial and error many years ago when I had my offline business. It was slow but steady and grew organically.
-Donna
Lisa says
Hi Donna, Yes, I saw so many “stores” years ago that I had for accounts at the newspaper go out of business when they grew too fast. They always wanted to open their “next” store and ended up losing it all, sadly! Thanks for coming by here and have a great week.
Dana says
Hey Lisa,
Excellent tips.
I agree with “slow and steady wins the race”. As far as I’m concerned, it applies to so many things. Tough to remember in a world that promises instant gratification and results – from food to finance to weight loss.
I also agree with having balance. It’s helpful to take time away from things and just let yourself live, breathe, move around and enjoy your time.
I’m thrilled to have you contribute to the blog. Thanks for the fantastic post. I know this will help people 🙂
Lisa says
Thank you Dana. You make an excellent point with that – that instant gratification is promised today. Balance is key to everything too, too much of any one thing is not good. Thanks for having me here Dana, much appreciated and have yourself a great day!