PMP’s “Marketing Matters” journalist offers reasons for, and solutions to, this common business downside.
One of my first columns for this magazine, when I first started writing for it, was titled "Fail to Plan, Plan to Fail." Many of the inquiries I get for my monthly Q&A column these days are still about getting from point A to point B. As a result, I'll return to a question I'm frequently asked but can't explain in depth in my monthly Q&A column owing to space constraints. "Why isn't my business growing?" is the query.
The question is straightforward. Not so much, as it turns out. The following are 10 frequent growth stumbling blocks and how to avoid them.
1. You lack a business and marketing strategy.
Operating without a defined plan is a surefire way to keep things the same, if not worse. Your competitor's closest friend — and a primary cause of development standstill — is a lack of strategy. You're worried and trying to figure out what went wrong and why while your competitors are projecting, evaluating, and preparing.
Planning is required for long-term growth, budgeting, cost containment, greater profitability, market penetration, and effective and efficient advertising.
Predicting the future without preparing is entirely at the mercy of chance. It is impossible to run a business "by the seat of your pants." Stop whining if you continue to function in this manner. Stop blaming the economy, the weather, your competition, and everything else for your lack of progress. You are the reason for this.
2. You don't set yourself apart from the competition.
If you or your staff can't answer the question, "How are we different from our competitors?" you've just discovered one of the main reasons for your company's stagnation.
Take the time to think about an answer to that question, and then share it with your team. The response should be self-evident. It's crucial for closing that huge account and selling value above money.
3. Your advertising and marketing budgets are insufficient.
To make money, you must first have money. Many small and medium-sized businesses, on the other hand, underspend on advertising and marketing. The amount of money you put into this area has a direct impact on the growth of your company. Small to medium-sized pest management companies should spend seven to nine percent of their estimated yearly income.
4. You are not organized.
Systems help you save time and keep track of all aspects of your organization. A growing business needs systems in place to help it grow. These systems include:
- Track production and revenue on a weekly, monthly, and quarterly basis (broken down by technician).
- Compare statistics from previous years to production, production and sales targets, and performance.
- Create an advertising and marketing budget and monitor its effectiveness.
- Keep track of leads and conversion rates.
- Keep track of how many customers cancel and how long they stay with you.
- Screening potential employees can aid in predicting their success.
- Keep track of consumer happiness.
5. You don't have enough people on your team.
"I don't have enough money to hire help," you say. "If you don't take a chance and acquire help with responsibilities that distract you from building your firm, you'll never have enough money to hire help," I say. You'll be trapped if you don't have enough personnel help.
6. You are a smug person.
A company's inertia can be fatal. Let me give you an illustration: Your search engine optimization (SEO) firm isn't giving you a good return on investment (ROI), but you're hesitant to switch because you're afraid of getting even worse results. The foundation of maintaining the status quo is inaction. This is something I recently advised to a client. They protested at first, but eventually agreed to swap. In comparison to the 1.5 to 1 return they were getting before, they are now getting a 4:1 ROI on their SEO.
7. You're a slacker.
Meeting your goals can be difficult, if not impossible, when procrastination gets in the way. Procrastination is frequently the partner of perfectionism. Perfectionists can use the excuse that they didn't have enough time if they wait until the last minute. You can convince yourself that deferring one stage in a lengthy process is a one-time occurrence, but this tendency becomes the norm rather than the exception, and the project never gets completed.
8. You tell yourself lies.
When businesses stop developing, leaders start blaming themselves and convincing themselves, "We don't want to grow any farther than this." The truth is that you are the source of the issue. It's typical for people to outgrow their leadership roles, and we should just admit it when it happens. Stop making excuses for why your business isn't expanding. "This has exceeded my capabilities and leadership," say to yourself, "but I'm going to recruit someone who can help me grow." You'll stay stuck if you keep blaming.
9. You don't delegate authority.
People are hesitant to delegate since it requires a significant amount of upfront effort. However, by completing the task yourself, you are not making the greatest use of your time. Involving others in a project in a meaningful way allows you to grow your employees' skills and capacities.This implies that the next time a comparable project arises, you can confidently assign the task, knowing that it will be completed well and with less involvement from you.
10. Your receivables (A/R) are past due.
At 30 days, start alerting your clients about their past-due status. Commercial accounts are included in this. Set up an organized program to get the dunning process started as soon as possible. The chances of being collected drop considerably after 60 days. Consider implementing a billing system that requires credit cards to be kept on file.
