The Most Common Growth Obstacles You Will Need to Overcome in Your New Business
by Dominic Basulto, contributing writer
While every startup is unique, there are certain growth obstacles that are common to just about every startup. If you are able to overcome these growth obstacles, you will be able to avoid the most common reasons why many startups never make it past Year One. With the right business coaching, you will be well positioned to overcome the following common growth obstacles.
Lack of capital
In most cases, entrepreneurs are financing a new business with their own savings. After working a few years in the private sector, for example, they might have saved enough to quit their job and do what they really want to do with their lives. Other entrepreneurs, though, are financing their new ventures with credit cards, or with money borrowed from friends and family. At some point, you might need to raise capital from angel investors, venture capitalists or banks. That can be a daunting process, but a business coach can help to smooth out the process for you.
Cash flow squeezes
There will be inevitable cash flow concerns as you start a new business. Sometimes, it’s simply a matter of dealing with an imbalance between the cash you are receiving and the cash you are paying out. For example, you might be paying upfront for important inventory, but it might take you 30, 60 or even 90 days to sell down that inventory. If that is the case, you might need help in figuring out ways to restore balance to your cash flow.
Trouble acquiring new customers
In the best of all worlds, acquiring new customers would be very simple. You’d open up a new storefront, put a sign out front that you’re open for business, and customers would start appearing the next day. But that’s not the way business works. Even a prime real estate location is no guarantee of customer foot traffic. And it’s here, too, that a trusted business advisor can play an important role. He or she can help to develop a customer acquisition strategy that will put you on the road to future growth. Based on knowledge of the local market, you will be able to leverage tactics and approaches that have a solid track record of success.
Ignoring the lessons of other companies in your industry
It’s quite common for startup entrepreneurs to assume that their idea for a new business is so unique that it somehow doesn’t need to follow the conventional rules of business. But that’s akin to saying that the standard laws of physics don’t apply to your business, either. Business coaches can help you to understand the lessons of other companies in your industry. Why did some companies fail in the past? Why did other companies become successful, seemingly overnight? They can help to answer these questions and provide the right contextual framework for your venture.
The good news is that many of these obstacles and hurdles can be avoided right at the outset. A good business coach will be able to provide plenty of tools, expertise and resources to help you power through these growth obstacles and lay the foundation for the next stage of growth for your company.