There are patterns in terms of mistakes that most entrepreneurs make once they are starting to grow and scale. It is every business owner’s wish to grow and expand what they have worked so hard to launch after getting past the initial stages (which comes with its own sets of mistakes). Just like in life, a new phase in business comes with its share of missteps and it is unfortunate that entrepreneurs who wish to upscale their businesses make them time and time again. In this article, we are going to focus on common mistakes businesses make during the growth and scale periods.
Not Hiring a New Team To Replace Original Employees
When starting a business, there are cash constraints that can force a business owner to hire lower-cost generalist to help. These employees may not necessarily excel in one area of the business, but they are flexible and good enough to help wherever they need to. However, as the business continues to grow and comes the time when it needs to grow and upscale, there is need to bring in specialists to run different departments. It is also vital to hire new staff with more experience in order to help the company to reach its target. The problem is that business owners often feel loyal to employees who were there when the business started. They end up holding them and assigning them wrong roles. Ensure that with time, you have the right people in the right roles.
Not Understanding Economic Drivers of Your Business
Do you understand the numbers driving your business? If you don’t know, you will end up making decisions not based on data and wind up investing in areas that do not make the most economic and business sense. Companies that are overcapitalized usually make this mistake. They tend to overspend. Don’t be in a rush to invest. Take time to identify a product/market that makes economic sense and a working system for acquiring clients before you decide to invest in scaling.
Focusing In Wrong Opportunities For Growth
When scaling, you need to build a product road map around your customers’ wants and needs. What does this mean? Most businesses get so caught up during the growth period that they forget to listen to their customers. As a result, they end up launching what they want instead of what their customers need. Ensure that you focus on what your customers want the most. Also, focus on feedback and data. Your product road map needs to be built around their wants and needs.
Not Upgrading Payment Systems
Many business owners continue to use outdated technology and legacy payment systems because they are hesitant to take on new payment platforms. Payment systems that are outdated negatively impact on a business. Legacy systems require regular maintenance and that can be costly to your business. There is also the issue of security. Old payment solutions put business owners at a higher risk for disastrous data breaches. As you scale, ensure you invest in new payment technology to help you increase your competitive edge, improve your decision making and grow your revenue. Partner with a reputable company that provides payment solutions that will advise and help you find the right payment solutions that perfectly fit your needs.