3 Ways Business Owners Can Hinder Business Growth

The growth of any small business can be hindered for at least a dozen reasons.

It could be a lack of capital, a poor economy, a competitive market, or it might just be you.

Yes, you, the business owner.

It’s difficult for any business owner to hear this and many times they don’t but think about it for a minute; could you be the reason your small business is not growing?

The impact of the business owner on the business is remarkable.

The smaller the business, the bigger the impact.

As an extension of the owner (s), it makes sense when the business absorbs some characteristics of the owner.

The business owner is the biggest risk for a small business.

This is because the success or failure of the enterprise depends to a large extent on their capabilities, attitudes and vision.

A business owner’s actions and inactions can be a bottleneck to the growth of their business.

Unless they become aware of this and make an effort not to be one, no other technique or strategy will work.

There are three ways in which business owners become obstacles to their business growth:

1. Their behaviours and lack of capabilities

2. The way they’ve structured the business depends on them

3. Their lack of vision and unrealistic expectations for the business.

1. The Behaviour and Capabilities

Some personal traits and behaviours of entrepreneurs and business owners can harm the growth of their businesses.

We have seen many business owners with poor personal financial management carry over such bad traits to the business, causing business resources to be misused for personal gains.

Instead of using loans or equity investments to grow their business, many business owners use them to buy cars and other properties at the expense of their company’s growth.

The capabilities of a business owner also play a huge role here; business owners who have experience, know-how and network are better able to grow their businesses than those that lack them.

Therefore, business owners need to constantly improve themselves so they become assets to their business instead of liabilities.

Read More: 3 things Investors Want to See In Your Financial Statement

2. Owner–Dependence

Many businesses have been structured to be indistinguishable from their owners.

All business decisions are made by the owner, from the smallest detail to the most significant.

A management style like this does not allow its employees to thrive and handle different aspects of the business effectively.

This persistent micromanaging leads to bureaucracy and makes it impossible for the business to function properly when they are not available (for medical reasons, for instance).

This approach to running a business can only be eliminated by a shift in mindset.

To one that enables the owner to see that employees can be trained to decide just as good as they would have or even better.

3. Lack of Vision/Realistic Expectations

Many experts have opined that one of the core roles of the business owner is to define the vision for the company.

If a business owner is too absorbed in day-to-day operations, he or she won’t have enough time to plan and drive the company forward.

Without foresight, a business may not be able to observe market trends or take advantage of growth opportunities.

Growth is also hindered when a business sets unrealistic expectations for growth.

Again, because the business owner has lost touch with the day-to-day realities of the business or the market.

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