30th August 2017
It’s received wisdom that between 40% and 50% of all new businesses fail within the first five years. There are many reasons for failure, some of them completely out of the hands of business owners, but a key point comes when the business faces what’s known as the ‘hump’.
Businesses face a range of challenges over the years. For small businesses, the first hump often comes in the first 3-4 years of business. Having started the business, established it and become relatively comfortable with how things are going, owners reach a point where they have to make a decision – take the risks that are necessary for growth, or keep going the way things are? How you react to getting to this point in your business will define what happens for the next few years. You may need to:
Each of these may feel like a risk, but equally, they are all manageable risks if you approach them in the right way. You might want to talk to a business mentor at this stage, who can give you experienced, objective advice and help you to take the right decisions at the right time.
Unfortunately, there’s no quick and easy way to bypass this stage of growth. You’re probably in for a lot of hard work – but there is plenty of help out there, and once things have settled down, your business will be in a fantastic place to help you grow the way you want to.
The main things to remember are:
If you think you’re experiencing a growth hump, or you can see it coming around the corner, now is the perfect time to talk to us – we’ve helped lots of small businesses set and keep their growth plans. Just contact us today.