There Is No Vision
Businesses should always have vision statements. These have to be written and their purpose is to help decision making and planning. When you do not have a company vision that is clear, you will end up moving along without a real direction. It is basically impossible to create a good strategy and plan something that will work if you do not really know where you want the company to go.
Lack Of Strategic Planning
All organizations need strategy and have to build strategic plans in order to have the steps needed to achieve that strategy. Strategic planning will help the organization to have a fresh vision and always move forward as time passes. A strategic plan will obviously have to be refreshed after some years or whenever focus or environment changes occur.
No Written Goals
It is very important for any company out there to have SMART goals. Accountability has to appear in order to achieve the goals. Organization growth will automatically be diminished when the goals do not exist or are not written. Business failure will always appear when you do not have structured performance management processes implemented to achieve your goals. For instance, let’s say you run a casting company and you want to create new casting parts for clients. Is this something that you really need and something that will help you to achieve your goals or not?
Lack Of Desire To Grow
There are many companies that just do not want to grow. This is because of how difficult the process can be and the fact that a business owner sometimes does not feel comfortable to grow. When the first employers are hired it becomes pretty clear this is going to be difficult. Growth always means commitment from the organization’s top.
Not Understanding Customer Needs
This is by far the most commonly met problem that hinders business growth. Many organizations become stuck because the world changes and they do not understand what the customers want now. Something that worked a few months ago may not be great right now. It is really important for every single company out there to guarantee good customer service. This is what leads to a really long term success. Customers are the ones that pay employee salaries and bills. Be sure you know what they want and you do all that you can to offer just that.
In order to grow your business you need to reinvest part of the profits. This can be difficult in the early stage of growth as funds are limited but whenever it is possible, be sure you consider all the reinvestment possibility you have. For instance, it is possible to update facilities or invest in new technology that makes your products better.