Do you have a business that was launched with tremendous success and maintained a steady growth but despite a continuous flow of customers, lately seems to have become stagnant? If your revenue chart has flattened and your company is struggling to increase its monthly bottom-line, it has likely reached a business plateau.
Almost every business will reach a static period at some point but only businesses that are able to rise above and move forward will thrive. When business growth levels off, many owners and leaders find themselves perplexed and unnerved as to what can be hindering further development. Often hiring more employees or increasing marketing efforts are the ‘go-to’ solutions for an easy fix. However, simple solutions such as these don’t effectively solve the problem. In order to create a more permanent solution that will push the company forward, it is vital to thoroughly assess the situation and determine the underlying cause for this lack in momentum.
First and foremost, assess current processes to identify inefficiencies. Are your employees overly occupied with manual tasks that are limiting their output or removing them from time that could be spent on sales? As businesses grow, simple tasks that may not have consumed significant time as a start-up may now be dominating periods that could be used more efficiently. If tasks that can be simple are involving too many steps, they may be creating inefficiencies. For example, when information is input in a database, it should be integrated with other databases so that it need not be entered more than once. If this is not occurring in all facets of your business, more automated systems could be beneficial.
Get motivated. When a business is launched, founders are typically very motivated to make the business thrive. This sense of enthusiasm usually trickles down to all levels of the organization, creating a culture of highly driven staff. Once the business becomes more established however, owners tend to decelerate their momentum which can cause a more laissez-faire attitude amongst staff. If this is the problem, then the same determination and drive that existed when the company began needs to be injected back into the culture.
Finally, constantly seek improvements. There is always room for improvement and if you don’t find it, your competitor will. When businesses experience steady growth and revenue is established, leaders may start to decelerate the pace at which they seek improvement – seeing that the processes they have implemented brought them growth in the past. When this happens, a business is more likely to reach a plateau. To avoid this, it is important for leaders to acknowledge that in order to maintain continuous growth, constant improvements must be made. No business will ever be perfect and strategies must incessantly be revaluated to keep up with the times.
Safiya | DBPC Blog