Overcoming Barriers of Growth

As the backbone of the economy, small businesses continue to be a source of dynamism, growth and innovations. Small to medium-sized businesses constitute 90 percent of total enterprises in most economies.

Below are five areas where companies tend to make mistakes and tips to avoid them.

Having a firm grip on these issues before you get going will save you money, help you avoid pitfalls and could put you on the fast track for growth.

1. Financing your business

Don’t start with a mountain of debt  

Cash flow is the top priority for any business’ success as it determines daily operations, expansion plans and purchasing power.  The second largest expense facing a business is property costs.  By relinquishing long-term lease commitments and taking a more flexible approach to their workspace, businesses can scale up or down in a new market with minimal risk and limited upfront capital.  

2. Technology

Companies don’t fully harness the power of the Internet. Technology is a key driver for business growth and the arrival of e-commerce trading sites and social networks aimed at businesses offer enhanced sales and marketing opportunities.  When expanding your business, your services need to be obvious to new customers no matter where they are based.

3. International Opportunities

Companies are reluctant to expand in this economy

Expanding your business beyond your current borders to a new state or new country is one way to grow your business.  New research presents evidence that companies operating internationally are yielding better financial results than their domestic counterparts.² Foreign expansion, even in this economic environment is proving to be good for business. As a result, global mobility is accelerating at a rapid pace and most companies lack the internal resources to properly navigate in a foreign market.  One way to tackle this challenge is to establish a presence through a third party workspace provider.  These types of partners will alleviate the legal and cultural hurdles a business can encounter when expanding globally.

4. Minimize Risk

Companies don’t have an exit strategy.

Mapping out an entrance and exit plan for a new market that will limit a business’ financial exposure is critical.  In order to mitigate risks at every step, businesses can conduct a comprehensive audit of the market and implement a flexible approach, which will help to reduce risk.

5. Cross Cultural IQ

Companies don’t consider cross-cultural differences

Learning how to market and sell your products and/or services is essential for success.  To be successful, it would help to have a local person supporting your business. Ultimately, local intelligence enables a business to develop a strategy that will resonate to its target audience.