Business TransformationC-Suite Advisory

Reasons Why A Business Fails To Grow

Remaining sustainable and even more able to grow your business bigger is not a piece of cake now that the financial crisis bothers most businessmen in the globe. However, opportunities are abundant and it seems that there is a certain pattern that stops people from thriving. Let’s explore today what these reasons are and what analysts suggest.

They don’t identify opportunities when they show up

Regardless of how well someone is in planning opportunities often arise in front of our eyes. The particular issue doesn’t have to do with adaptation. The same people that will prove inefficient to recognize an opportunity when it appears may be the best firefighter. Meaning that they may be quite adequate in handling an emergency and putting the business out of the hard threat of closing.

When the situation is pressuring we all do our best. Things start to be hard when we relax and things go as expected. Are willing enough to grab opportunities and change our plans to adopt in a new more ambitious scenario?

Strategic plan hierarchy
The strategic plan hierarchy gives the bigger picture of why this might be happening. We could say that the businessman sets the boundaries of the company without even realizing it.

The motto here could be: Think big, grow big. What puts large companies aside and makes the difference between them and the small businesses is how big they see themselves in the first place. And how big is also related to when. Meaning that if you plan to become a giant in a certain industry you have to realize that this will take time and actually years.

When it comes to planning every business starts with the small tasks and projects they have to deliver. They implement tactics that will allow them to escape emergencies every month and even every week. Taking a step forward executives will take charge and develop a strategy that the company will have to follow for the next quarter or semester to achieve some results. Of course, things will not stop there. Every successful company is expected to have the major business objectives that refer to the next year. In terms of departments, each department has to make a short-term plan for the upcoming year.

Long-term plans refer to the next 3 to 5 years of planning. Regardless of how big the business is, we consider that 3-years planning should be one of the objectives in any case. Larger companies have a vision. They want to have a clue of what the landscape in the industry will be after 5 years from now, and of course, they include their brand in it.

The vision comes to depict a successful future. Last but not least, giants like Tesla, also have a mission. The mission is their reason for existence and it is timeless. It goes beyond the company’s goal for profits. People committed to this act like entrepreneurs, focusing on bringing something new for humanity in general. Inspiration and creativity go beyond ambition and set the true leaders of tomorrow.

Serving each step properly

People who work in the industry believe that the reason most people can not grow their business is that they simply haven’t paid attention to the details of the business plan as this grows in more detail as time goes by. To be more precise here are the main issues there often seems to be a problem.

  1. They are not aware of the competition. They know the main competitors but they cannot name and describe them all.
  2. They are not objective. In other words, they see what they want to see. They are being way too optimistic and this is translated into wrong evaluation.
  3. They don’t know which obstacles they will discover when they enter a new market.
  4. They have bad customer service.
  5. They overestimate the profits mostly because they believe they will have more customers than they really do.
  6. They don’t use the right installation when they build the product.
  7. They don’t work with the right team. They may be reluctant to fire people or they may not even focus on their partnerships.
  8. They have an overall misleading philosophy regarding the sustainability of their business.

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Ryan Miller

Ryan Miller

Global Assignment Editor
Ryan Miller is the Global Assignment Editor at CEOWORLD magazine. He covers anything and everything related to CEOs, CFOs, CIOs, senior management executives, business leaders, and high net worth individuals worldwide, whether lists or lifestyle, business or rankings. During his five-year tenure at CEOWORLD magazine, he has employed his expertise in data science across several roles. Ryan was previously responsible for data modelling and analytics, as well as secondary research, on the CEOWORLD magazine Custom Research team. He can be reached on email ryan-miller@ceoworld.biz. You can follow him on Twitter at @ceoworld.