5 Reasons Many Small Businesses Never Grow Big
By admin
Many small businesses never grow big despite their owner’s goal of expanding them into large companies.
This article discusses five (5) reasons many small businesses never realize their dreams of becoming big.
They are:
- The Owner’s Mindset
- No Growth Strategy
- Lack of Capital
- Small Market Size
- Poor Business Systems
1. The Owner’s Mindset
The way the business owner thinks about and runs the business can be an obstacle to the business.
A small business that wants to grow into a large business should not be run like one that does not have such dreams.
Many small business owners have growth-limiting mindsets like micromanagement, the inability to take risks, try new ideas or technology, or even the desire to maintain 100% control of their businesses. Such mentalities limit them from becoming the big businesses they plan to become.
2. No Growth Strategy
The majority of small businesses aiming to become big businesses in the future lack even the most basic plan for achieving this goal.
They are consumed by their day-to-day business activities and never really have the time to sit down and plan for the future they want for their businesses.
In Nigeria, this is a major factor that keeps some small businesses the same year after year.
Not having a detailed plan on how your business will move from its current stage to become a big business in the next five or even ten years is a huge obstacle to achieving that goal.
3. Lack of Capital
Growth requires capital. Small businesses need it to survive especially if they have plans to expand into a large business someday.
And it’s a critical factor that hinders many small businesses from ever achieving their goals of becoming big.
Business finance, especially for small businesses in Nigeria, is scarce, expensive and impatient. Therefore, small business owners should implement plans to overcome this challenge before it becomes a problem.
4. Small Market Size
No business can grow faster than its market. And when your small business operates in a small, declining or highly competitive market, it can be really difficult to grow.
The size and nature of the market play a critical role in determining whether your small business can attain its goal of becoming big.
This is why small and medium-sized businesses must research their market and industry properly, take creative steps to expand their market, and offer value distinct from the competition.
5. Poor Business Systems
A small business can grow into a large one by establishing the foundation, structure, and systems to achieve that goal.
Unfortunately, many small businesses lack the systems and structure they need to support their growth.
This lack of business systems and standard processes hinders them from becoming a big business in more ways than one.
Because without a system when the business grows beyond what its owners and managers can handle, it collapses back into a scale they can manage.
If you need help growing your small business into a big business, contact Mr Ted Iwere today!!!
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