Hi, I’m Bette Hochberger, CPA, CGMA. For today’s Tax Tip Tuesday, I will discuss some common small business growth mistakes and how to avoid them. Growing a business is exciting but hard, with new challenges and mistakes often happening as entrepreneurs figure things out. So let’s dive in and learn some tips on how to avoid this.
Common Business Growth Mistakes & How to Avoid Them
Not Enough Early Planning
Before expanding your small business, consider crucial factors such as managing increased demand, equipment availability, and marketing strategies. Each business’s growth journey is unique, starting from point A and ending at point B, but the route differs.
Prior preparation acts as a roadmap for this journey, providing clarity and direction. This could include tasks like market research, lead generation, and forecasting, though these may change depending on the business’s size and nature.
You can avoid this common mistake by seeking advice from experienced individuals, adapting new methods, and initiating early engagement.
By doing this, you’ll learn helpful tips from others who’ve been on the same path and improve your business to handle more work. Starting to talk with possible clients early or doing some market research will help make your plan for growing stronger and more effective.
Pursuing Excessive Opportunities as a Startup
Knowing what’s most important is a great skill for growing your business. It’s easy to think all chances to make sales are equal, but saying yes to too much can cause problems. You might end up rushing or trying to do things your business isn’t ready for.
In the long run, choosing the chances that will be most helpful for your business is better. This choice will guide what you sell, what you put money into, and what gets your time and energy. Stay focused and give your best to a few chances instead of being pulled in too many directions.
Want to avoid this mistake? Document potential opportunities, set time aside for prioritization, and use an impact effort matrix. An impact effort matrix is a basic decision-making tool that groups tasks by their impact and the work required to complete them. After grouping tasks, you’ll know what should have the most significant impact with the least effort.
Not Investing In Your Business Structure
Technology is reshaping how all businesses work, making it essential to invest in new tools for better scalability, no matter your growth speed.
As a business owner, consider if you can handle the same tasks as your business grows. If not, explore different ways to keep the work manageable. Try to brainstorm potential issues, look into tech solutions, and do some cost-benefit analysis to prioritize.
Rushing to Hire Staff
This is an important one. Solving certain issues may require hiring more people, a process that demands careful attention and time.
Waiting too long to hire can lead to rushed decisions and inadequate scrutiny due to other pressing tasks. If hiring is within your budget, it’s wise to plan ahead to avoid overworking when business picks up.
You can avoid this common mistake by establishing a hiring process ahead of time, doing a cash flow analysis, and choosing roles and salary or wages.
I hope you learned something new today. As always, stay safe, and I will see you next time.
