How and why can business growth lead to business failure?
There’s nothing like reaching a goal after lots of hard work and this is no different in business. Overcoming challenges can be addictive. When we’re challenged, our abilities are tested and we are motivated. The crux of the matter is how you manage your challenges, how you can harness their positivity and avoid turning challenges into hazards.
This is where Berley comes in. We have a team of business growth consultants with a proven track record who can help you navigate through business challenges and position your company on a solid path for growth. Our specialists can deliver a comprehensive growth plan specific to your business and assist you throughout every step of your growth process. Advising small businesses through analysis and expertise is our speciality. Let’s sit down and discuss how Berley can make your growth experience a positive one.
We are business growth specialists – 020 7788 8261
The rapid growth of your business may seem like a dream, but growing too quickly can threaten your operation. Learn from the decisions other small businesses like you have made, protect your business and jumpstart an informed future for your company.
Here are a few points to consider:
Too much growth can produce unmanageable debt
Small businesses that grow on a rapid scale can take on large debt sums they can’t handle. When companies borrow funds to extend a growth cycle briskly, it may be hard for them to meet these debt obligations when growth slows down or when profit plateaus. But despite the negative impacts loans can have on small businesses, don’t let this notion deter you from acquiring some debt to fuel your goals. As long as you make well-informed decisions, handling debt shouldn't complicate the success of your business.
Sometimes companies aren’t built to be big
There are plenty of benefits for staying small and local, serving a solid customer base that you understand well. Sometimes, exponential growth may bring more negative impacts than positive, as it can lead a company’s aspiration becoming too lofty or restrain its flexibility to meet the customers’ needs. A small company with a strong culture may also want to retain its size as growth may bring an unforeseeable impact.
Knowing your niche and understanding the optimal size of your business through professional advice is crucial when considering the growth of your company. Don’t make assumptions based on what seems like common sense — sometimes smaller is better.
Growing a small business can lead to skewed management
Growth can require small businesses to take on new business partners and consider other stakeholders. Your business’ potential investors could push the direction of your company to a path that you don’t want to take, which can cause miscommunication and mismanagement. Differing motives means a loss of control over the company, which trickles down to how the business performs.
If a particularly large project arises that your business needs help tackling, it might be more beneficial to consider sub-contracting rather than taking on permanent partners. If you do choose to pursue growing your business through more fixed stakeholders, seek assistance in choosing the right partner for your business that won't split your company in different directions.
Bigger numbers result in misunderstanding
Keeping track of numbers and using them to guide your decision making can be challenging. Without an attentive accounting team, small businesses can overlook the cracks in their finances when experiencing growth. Accountants can give you the assistance you need to see the strengths and weaknesses of your finances to help better manage your business.
Growth isn’t always a healthy process. Being realistic, keeping a steady growth pace, and understanding what’s best for your business through professional consultation can make your growth experience a successful one.
Contact Berley on 020 7788 8261 to talk to business growth advisors who can help you gain the growth insights you need today.