Why Has the Growth of Your Business
Slowed Down and What to Do About It
Many owner operated businesses grow quickly in their early days but more often than not they reach a
plateau. Growth slows, if there is any at all, and profits do too.
Many business owners are happy with this, or say they are, particularly if the business is generating
enough profit to be comfortable.
The problem is that while your business is standing still, others around you are growing theirs.
So ultimately, you start to lose out to the competition. You lose market share or your unique identity or
And then you have to work twice as hard to keep up.
There are a number of reasons for the growth of a business to stall. The more obvious reasons, such as
not being able to find enough new customers or price-sensitivity in the market place are often
symptoms of other constraints in the business. These are not faults in the business, rather constraints
that are more or less inevitable given the systems and structures needed to operate a business of a
given size. In owner operated small to medium sized businesses, the constraint can sometimes be the
owner themselves, as described here:
A small business revolves around the owner. All decisions have to be made by them or run past them
causing a bottleneck in the running of the company. The business becomes more and more dependent
upon the owner because the employees stop taking decisions. Ever heard a business owner say: "I wish I
could find staff that would use their initiative"? It's often a symptom of the owner making all the
decisions. As a result, their employees don't feel that they are supported in making their own decisions
or in taking a risk or two that would benefit the company. As the business grows it is more and more
important that issues are dealt with by individuals, teams and department heads.
This situation is often compounded by the fact that employees may have a strong loyalty to the owner
of an owner operated business skyandzen. This is fan