There are at least a dozen reasons that may hinder the growth of any small business.
It could be the lack of capital; a poor economy or a competitive market, or it could just be – You.
Yes, you the business owner.
It’s hard 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.
The business is an extension of the owner(s) and so it makes sense when the business absorbs some characteristics of the owner.
The business owner is the biggest risk for the small business because the success or failure of the enterprise depends to a large extent on their capabilities, attitudes and vision.
Through their actions and inactions, business owners become a bottleneck to the growth of their business and unless they realize this and makes intentional efforts not to be, no other technique or strategy that are applied would successfully grow the business.
Business owners become obstacles to their business growth in three ways: –
1. Their behaviours and lack of capabilities
2. The way they’ve structured the business to depend 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.
Many business owners get access to loan or equity investment and instead of using such funds to grow their business, they waste it on acquiring cars and other landed properties at the expense of the growth of their business.
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.
This is why business owners need to constantly improve themselves so they become assets to their business instead of liabilities.
2. Owner – Dependence
Many businesses have been structured to be indistinguishable from their owners.
The business owner is making all the decisions from the most irrelevant to the most significant aspect of business operations.
Such a management style doesn’t give their employees room to thrive and handle different aspects of the business optimally.
This persistent micromanaging lead to bureaucracy as well as make it impossible for the business to be able 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 make decisions 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.
But when a business owner becomes too engrossed with day to day operations, there would not be sufficient time to plan and drive the company to the future.
A lack of foresight can mean that the business is not observing market trends or taking advantage of opportunities to grow the business.
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.
A lot of the shortcomings of a business owner can be curtailed with the help of a business coach.
Getting an SME coach gives the business owner the ability to improve their decisions and curtail personal shortcomings that may affect the growth of their small business.