As a business owner, you already know how important continuous growth is to your business. As you grow your business, it can bring new opportunities and experiences for your company and its employees. However, it is worth being prepared for the challenges that can arise on your journey to grow your business. You may face challenges while growing your business in the constantly evolving market, and as your business grows, you will need to address different problems and opportunities with the appropriate solutions. The solution that worked in the past may not be the right solution today.
So, understanding and overcoming common growth barriers to your business is necessary to keep growing. It is also important to ensure that the current business operations do not interfere with the operations in the future. Being aware of the common growth barriers that can arise, and with your leadership skills, you can seize every opportunity and drive sustainable growth.
In this blog, you will realize the common challenges and mistakes of growing any business and what you can do about them.
What is a business challenge?
A business challenge denotes any obstacle or difficulty a running business faces that can significantly impede its overall growth, efficiency, profitability, or competitiveness. These challenges may arise from various internal or external factors, including changing market conditions, technological advancements, regulatory requirements, current business operational inefficiencies, and existing competition in the market.
In the fast-paced and ever-evolving business landscape, firms encounter numerous challenges that can hinder their growth progress and business success. As new digital technologies emerge, businesses must continuously innovate and integrate these advancements into their operations to stay competitive. This often requires significant technological investments in new infrastructure systems, employee training, and sometimes even a complete overhaul of existing operational processes.
A typical example of a business challenge is rapid technological advancement, with 70% of companies reporting struggling to keep up with digital innovation in recent surveys by Deloitte, PwC, and McKinsey. Additionally, 60% of businesses faced significant disruptions due to market fluctuations during the economic downturn 2020, highlighting the need for agile and resilient strategies.
Steps to overcome challenges and mistakes encountered while growing a business
As your business grows, your customer base may change. Your business will need to incorporate diverse customer needs and expectations. To consistently meet your customer’s needs, it is essential for you to have a thorough and deep understanding of your customer’s expectations. It can be possible through a strategic approach of collecting and analyzing customer data and building strong relationships with your customers through effective communication.
The classic example of understanding customer needs better is Amazon. The company uses advanced data analytics to understand customer preferences and behavior so that they can provide highly personalized recommendations. These personalized recommendations are driven by complex algorithms that analyze the purchase history, browsing behavior, and even wish lists. This approach not only increases customer satisfaction, but also promotes loyalty, creates a cycle of positive feedback and reviews, and generates repeated business. The level of personalization that Amazon offers has become a hallmark of customer service and contributed greatly to Amazon’s reputation and success.
The points below explain how to gain insights into tackling different uncertain business situations:
Staying up-to-date with the market
Market research is a necessary process for launching your business, and it should regularly be performed at every stage of growing your business, not just at the launch of your business.
The market keeps evolving with the changing trends and customer behavior. Therefore, businesses’ operations are supposed to be updated with the current market trends and customer’s expectations. This can be done with the help of regular market research. Because, if you make decisions based on the outdated market report, then there are chances that it can lead your business to failure.
Example: When the American multimedia brand and former rental store chain ‘Blockbuster Video’ was at its peak, the company didn’t see the rising online streaming services like Netflix. The failure to conduct market research regularly and adapt to the changing market affected ‘Blockbuster Video’s growth, while Netflix benefited by adapting to the changing consumer needs and behavior.
It is essential to know where your business is so that you can work efficiently and maximize productivity. Moreover, it’s also good for your business to invest in innovation and launch new profitable products.
Key takeaway: Regularly conduct market research to stay ahead of the trends and competition.
"In the business world, the rear view mirror is always clearer than the windshield." - Warren BuffettIt’s important to understand what your customers want, how they behave, and what marketing methods will be most effective. Talking to key customers, suppliers, and business partners can provide valuable market information, like encouraging employees to share knowledge about customer preferences and expectations. Having effective IT systems can also analyze key information, such as the purchasing behavior and preferences of customers online. It may also be useful to conduct additional research, such as testing customer reactions to a new product and getting customer reviews. A market research firm or a team can help you with that.
Planning business strategy
As the market keeps changing, businesses need to re-examine and update their business plan and operations accordingly from time to time. A plan that was appropriate a year ago may not be appropriate for today’s market conditions.
As your business grows, you must modify and change your business strategy. Your focus may shift from acquiring new customers for your business to building meaningful relationships with existing customers. This often results in higher profits and more reliable cash flows.
Example: At first, Starbucks focused on expanding its business, but when its market grew, it shifted to improving the existing customer’s experiences and building loyalty through innovations such as the Starbucks Rewards program.
Key takeaway: Continuously update your business plan to match in accordance with the changing market trends and customer expectations.
"Plans are nothing; planning is everything." - Dwight D. EisenhowerIt is important to plan your business strategy and new projects carefully, such as launching a new business or new products. Make sure your new ideas match your strengths and vision. Regularly review risks, prepare mitigation strategies, and develop contingency plans.
Welcoming change
Complacency can put any growing business at risk. It would be dangerous to assume your business’s continued success based on its past performance. You will need to update your business plan regularly and respond to the changing market conditions from time to time.
A regularly updated business plan and strategy can guide necessary changes to the business operations, such as:
Switching to a new supplier who can supply additional priorities
Renegotiating contracts to accommodate increased volume
Training and developing employees to adapt to new roles
Get the latest news on new technologies
Take Kodak as an example. It failed because it couldn’t adapt to the emerging digital photography market despite the existing technology, while companies like Canon and Nikon embraced change and thrived.
Key takeaway: Embrace change from time to time to stay competitive and relevant.
"Change is the law of life. And those who look only to the past or present are certain to miss the future." - John F. KennedyThe key is to stay committed to your strategy, even if you have to make difficult decisions, which might include cutting jobs or changing suppliers to avoid a competitive disadvantage.
Expansion of workforce
Expanding your workforce is essential in each phase of growing your business and preventing your existing employees from becoming overwhelmed. The right candidates in your team can help share the workload within the workforce and provide the required skills needed for the development and growth of the company.
However, the increased workforce can also bring challenges such as complex human resource management and the need to involve other groups such as the administration. But, implementing the right tools and solutions, such as automated payroll systems and HR management systems, can help you address these issues efficiently.
For example, companies like Google have successfully managed their ever-growing teams by adopting sophisticated HR systems and processes to maintain their innovative culture.
Key takeaway: Efficiently manage the growth of your workforce by investing in HR solutions to simplify management and increase employee engagement.
"Train people well enough so they can leave, treat them well enough so they don’t want to." - Richard Branson
Meeting the diverse customer needs
As your business grows, your customer base may change. Your business will need to incorporate diverse customer needs and expectations. To consistently meet your customer’s needs, it is essential for you to have a thorough and deep understanding of your customer’s expectations. It can be possible through a strategic approach of collecting and analyzing customer data and building strong relationships with your customers through effective communication.
The classic example of understanding customer needs better is Amazon. The company uses advanced data analytics to understand customer preferences and behavior, so that they can provide highly personalized recommendations. These personalized recommendations are driven by complex algorithms that analyze the purchase history, browsing behaviour, and even wish lists. This approach not only increases customer satisfaction, but also promotes loyalty, creates a cycle of positive feedback and reviews, and generates repeated business. The level of personalization that Amazon offers has become a hallmark of customer service and contributed greatly to Amazon’s reputation and success.
Key takeaways: Utilizing data analytics to address customer needs will help maintain a strong relationship with customers. It can help you adjust the products to their personal needs, thereby increasing efficiency and reliability.
"The goal as a company is to have customer service that is not just the best but legendary." - Sam WaltonEnhancing business strategies with data analytics
As your company expands, it can become increasingly difficult to understand your diverse customers and organizations. To overcome this difficulty and increase efficiency, it is important to implement effective practices, intelligence, and methods for collecting customer data and analyzing business strategies.
Walmart is a good case study on how they are using data analytics to enhance their business. The retail giant uses the advanced data analytics to streamline its supply chain operations, thereby significantly reducing costs while improving customer service. Using the power of big data, Walmart can predict inventory needs, optimize inventory levels, and improve operational efficiency. Data analytics helps Walmart to track purchase patterns, seasonal trends, and even the impact of local events on the demand for products. It also helps Walmart to maintain a competitive advantage by managing the inventory with the right products at the right time.
Key takeaways: Investing in business intelligence tools will help make informed decisions and operational efficiency.
"Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway." - Geoffrey MooreHandling competitions efficiently
When your business enters the market and targets its potential customer base, you will surely face competitors. But, regardless of what your competitors are doing, it’s important to develop effective strategies to retain existing customers and attract new ones.
Apple is the best example of this approach as it continues to focus on innovation and enhancing the customer experiences. Despite the fierce competition in the technology industry, Apple has maintained its market leadership by continually expanding its product line and improving the user experience. For example, the continuous success of Apple’s iPhone series shows their commitment to keep innovating. Each new version of the iPhone comes with cutting-edge technology and features that differentiate them from the competitors and remain the best choice for consumers.
Key takeaways: Focus on your strengths as you compete with your competitors and continually meet customer expectations.
How can Code & Hue help your business?
Code & Hue, as a successful IT services and solutions company, is here to support you and your business and provide the services needed for your business’s growth.
Whether it is with the technology in trend or developing effective marketing strategies, our team of business growth specialists will help and guide you on how to move with the changing market needs, connect with your customers and build relationships with them, manage your workforce growth, and create efficient strategic plans. We will provide all the necessary tools and ideas to ensure that your business not only survives but also keeps growing in the competitive environment.
By collaborating with us, we can help you overcome any business challenges and succeed in growing your business efficiently. Get in touch with our experts to get started today with your growth journey.
Closing thoughts
Growing a business is exciting but, at the same time, it’s a challenging journey that requires efficient strategic planning and adaptability to change. Every stage of your business growth requires a strategy, weather it’s about tracking the current market trends or managing a growing workforce. By paying attention to the changing market needs, updating your business operation plan regularly, and using data analysis, you can turn every challenge into an opportunity.
More importantly, as a business owner, you have to be competitive to survive in the highly competitive market by understanding your customer’s changing expectations and continuously innovating.
Remember, growth isn’t just about scaling your business; It’s about continuous development and improvement to ensure long-term success. To know more connect with us at [email protected].
