For a startup to become sustainable, innovative and profitable, it takes much more than just passion. According to the report from “Breaking Through the Growth Ceiling,” CEO of Impulsa Business Accelerator, Fernando Sepulveda, lists the top reasons that prevent a company from growing. It also shows what actions are required to reverse the situation. He explains that startup can be at ease with a stable situation, but when other players appear in the market or changes in your customer’s niche occurs, growth becomes harder. Furthermore, he states that the culture of startup has not evolved, lack of capital to finance the expansion, an outdated business plan, wrong professionals in key positions are the three reasons that stop the growth of companies.
Here are 5 ways that will help entrepreneurs to rethink their startup business plan and growth strategy beneficial to the company.
- Review your business plan
Specialists state that to have a business plan, it is essential for anyone who is starting to undertake. In addition to assisting in mapping opportunities, planning also helps the entrepreneur to better understand the market that is performing.
In the report, Sepulveda, affirms that the business plan that one day contributes to the success can be what the company needs today but not much in the future. For him, moving from a $3 million to $30 million revenue requires a strategic shift and focus on the products.
- Consumer’s approach
Entrepreneurs who get stuck to the original business plan may also lose opportunities and leave behind elements that could help transform the company.
To discover the aspects that you need to change, customers should be the primary sources of research. It is the easiest and most affordable way to project a market research project. This monitoring will help the company to be less reactive and more proactive.
- Change the culture within the company
In the startup environment, it is common for professionals to have several functions. In the beginning, things work, but after a while, it can be difficult to delegate tasks or make decisions.
Sometimes the entrepreneur who started the business may not be the best fit to make him grow. So to grow, leave pride behind and hire people more capable than you take over. They are the keys to making the startup scalable.
- Recruit the appropriate talent
In order for your company to move into the next stage of growth, talents must be hired, but with caution. The kind of talent each startup needs is different. Moreover, consider the talent that will shine and make the company notable. For this to happen, the company must also change so that everything works in-tune.
- Protect and care for the company’s finances
Fernando states that normally small business owners feel reluctant and insecure about outside investors financing the business or acquiring loans from banks.
Growth requires capital. To gain the confidence of a financial institution and attract an investor, your startup’s finance must be organized. According to Sepulveda, the founders are very competent in the areas that are specialized, but often have unrealistic expectations about the value of the company.