more than 80% of managers face a range of challenges, especially with business growth. As a business grows, different problems and opportunities require different solutions. Too often mistakes that could have been avoided turn a business with great potential into a losing business.
Challenges for profitable growth
Managers are always looking to move up a gear and see their business grow. Growing your company will certainly provide benefits. However, several challenges must be taken up by business leaders in order to be in complete control of management.
Thus, we can mention some challenges that affect the company at different levels:
Financial Pressure: There may be a lack of cash to meet expansion costs. Taking on more and more work to generate more income creates additional pressure on your staff.
Face pressure from competitors: The quality of your products and services could decline. This can lead to an increase in the number of customer complaints. You may even lose customers to your competitors.
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Difficulty managing employees: Staff turnover can increase due to heavy workloads. Critical knowledge could be lost. Moreover, the staff will leave to hire and train new staff. Thus, you will waste time and money.
Decreased productivity
Management can be under pressure and operate reactively rather than proactively.
Importance of business structure
Often, business leaders think of investing in buildings, equipment, computer systems or additional staff in order to establish growth. Indeed, we often seek solutions to the work overload but we often neglect to invest in improving the structure of our business and in management tools that would optimize the operating efficiency and profitability of the business.
In order for a business to function as well as possible during growth, it must be well planned and set measurable objectives. Thus, it must be well-structured and well-established processes in place to ensure the execution of daily tasks in the best possible way. Moreover, it is necessary to choose effective management tools to ensure that you maintain control.
In conclusion, structuring your business allows the manager to seek huge gains by identifying huge labor costs per year (often the most expensive resource). It would therefore be normal to invest in the organization so that the staff is more productive and efficient.
The process for structuring your business
Understand before acting! Before any action is taken, a crucial step is essential: diagnosing your business The in-depth analysis makes it easier to determine the actions and adjustments to be carried out in the future. This is done by identifying the issues and strengths that affect the foundations of your business.
Plan: After identifying your strengths and weaknesses, business leaders should establish quantifiable and measurable SMART goals.
Implement an action plan that will allow the manager to achieve the objectives already established by properly structuring the business (profits, employees, and customers).
Defining the right tools: Business leaders must ensure that they follow the established recipe using the management tools put in place to achieve the targets. Thus, Put in place the financial structure, the organizational structure, and the marketing strategy to better manage and control.
In conclusion, Recognizing and overcoming common pitfalls associated with growth is essential if your business is to continue to grow and thrive. Essentially, you need to make sure that the steps you take today don’t themselves create additional problems for the future. Effective leadership will help you make the most of opportunities, creating sustainable growth for the future.
In order to begin your business structure process, we invite you to check it out and start now with the first step: Diagnose your business by carrying out our free online diagnosis to understand before acting.
