Is your business currently suffering from a lack of growth?
It’s easy to identify the symptoms of poor growth, but it’s much harder to find the underlying problems. Confronting ugly truths requires a lot of humility and sometimes you need to face tough situations in order to reach this place. When you can see your business from a fresh perspective, it gives you insight and clarity to make decisions to start facilitating growth.
Nobody wants to have a stagnant business. This is a business owner’s worst nightmare. Despite this, there are far too many people that only ever see the symptoms of poor growth and fail to address the problems that lurk behind the symptoms. It’s easy to diagnose symptoms because they are often right in front of you. Whereas true problems are much less obvious and are usually hidden in plain sight.
Business growth always comes down to mindset. It really is that simple. You need to adopt the mindset of a problem solver to overcome challenges and break new ground. To do this, you need to take a step back every once in a while to evaluate your current situation and gain a fresh perspective. A problem solver is able to look at the symptoms of poor growth and identify the underlying problems beneath these symptoms.
For instance, you might be feeling frustrated because you don’t have enough customers, leads, traffic, and salespeople to see the level of growth that you’re looking for. To actually take positive steps forward and change the trajectory of your business, you need to put your problem-solving hat on and look at the problems behind these symptoms of poor growth.
You can say that you aren’t growing fast enough, but if you don’t know what the underlying problems are, how are you going to be able to solve them? In this article, we are going to be looking at 10 hidden problems that could be behind your lack of growth. This is the perfect article to read if you’re struggling to grow your business. Let’s dive in!
1. Lack Of Referrals
I truly believe that you can build a business on referrals. In delivering excellent products and services, there are many businesses that have successfully managed to turn their existing customers into brand advocates. Word of mouth is incredibly powerful. Referrals are one of the most effective ways to grow your business, but the key is knowing when to ask for them.
There’s always a danger of asking existing customers to take part in your referral program too early. You need to build a relationship with your customers first. This will give your customers the confidence they need to refer you to their friends. One of the best times to ask your existing customers to take part in your referral program is after they’ve given you positive feedback on your products or services. It’s a lightning-in-a-bottle moment.
If you already have a referral program in place and you’re not getting any referrals, you might need to think about changing your approach. Is your referral program as frictionless as it could be? What incentives are in place to encourage referrals? When do you introduce customers to your referral program? These are all questions that you need to think about.
2. Lack Of Repeat Business
A lack of repeat business is one of the biggest growth problems that startup’s face. When you’re still the new kid on the block, it can be challenging to build brand loyalty overnight, but it certainly isn’t impossible. If you want the same customers to buy your products and services on a regular basis, you need to give them a reason to do so. This all stems back to delivering an exceptional product or service that simply leaves your customers stunned.
Churn rate is often an inhibitor of growth for businesses. Ultimately, it all comes down to your offering. I honestly believe that if you have a strong product or service, you will be able to create brand loyalty. If you feel that your offering lacks repeatability, this might be something that you need to review for the purpose of sustainability and growth.
3. Lack Of Competitive Advantage
What do you have that your competitors could never replicate? Whether its access to talent, technology or data, you need something to give your business a competitive edge. This could be the reason why you are experiencing a lack of growth. Operating in a crowded marketplace doesn’t mean that there isn’t any room for you. It’s time to get creative!
Many business owners use the excuse of being in a ‘crowded marketplace’ to explain why they are suffering from poor growth. I don’t believe this should be accepted as a reason for poor growth. If you can find a way to give your business a competitive edge, the market will end up feeling dramatically less competitive! Finding this edge will come from market research.
4. Poor Messaging
If you’re experiencing poor conversion rates, despite having thousands of eyeballs on your marketing channels every month, you need to think about the value proposition of your offering. Are you effectively positioning yourself as the solution to a problem that your target market faces? The best way to refine your brand messaging is through split testing marketing assets across channels and seeing what gets the most engagement.
5. Not Priced Competitively
There is nothing wrong with having a premium product or service, as long as there is a demand for a premium offering. To price an offering competitively, you are going to need to do extensive market research. If there is a business that is offering the same service as you for a cheaper price, you do not automatically need to undercut their pricing. First, you should look at exactly what they’re offering and whether you’re providing an inferior or superior service.
In these uncertain times, you may be stalling growth because your pricing is simply too high and out of reach for your target market. For a limited time, you could consider lowering your pricing and seeing whether this results in faster growth. It’s really just a case of testing growth strategies and seeing what works best for your business.
6. Weak Brand & No True Promise
What can customers expect to get from your products or services? Do you have a clearly defined value proposition? You need to have a strong value proposition that resonates and appeals to your target market. Social proof, such as testimonials and case studies, can be leveraged to build consumer confidence, enhancing your brand, and supporting growth through marketing.
The value proposition of your offering needs to be focused around a particular pain point that your target market is faced with. The more specific this pain point is, the better your brand will be able to position your offering as the solution. A specific pain point will help you to craft hyper-focused marketing campaigns that truly resonate with your target market.
7. No Unique Selling Point
A unique selling point needs to be about more than having an edge over your competitors. It needs to define your product or service, giving it the opportunity to be seen in a slightly different way to how your competitor’s offerings are viewed. In other words, a unique selling point is about bringing a fresh take to a product or service that exists within a crowded marketplace. For some businesses, this involves operating within a very niche market, creating an offering that appeals to a very specific type of person.
8. Wrong Messaging Channel
Are you investing time and effort into outreach campaigns through messaging channels that your target market isn’t using? It’s important to diversify your outreach efforts, helping you to engage with as many different prospects as possible. The key to growth is being able to move quickly and adapt when strategies are not working. With this in mind, you should take the “fail fast” approach and try different messaging channels.
9. No Core Niche-Targeted Market
Rather than trying to serve a broad market, I believe that you can grow faster when you operate within a specific niche. Small businesses that generalize in the products and services that they sell often end up losing their competitive edge. Sometimes, you can grow quickly when you stay within a very small market and become a go-to specialist in a certain field.
10. Poor Customer Experience
If you want your existing customers to eventually become brand advocates for your business, you need to go above and beyond for them, ensuring that they feel valued and supported at every stage of the customer journey. This means overdelivering when possible and going the extra mile for increased levels of customer satisfaction.
I hope you enjoyed reading this article and finding out more about the underlying problems that inhibit business growth. It’s easy to identify the symptoms of poor growth, but by being able to dig deeper and uncover the problems that lie beneath the symptoms, you will be able to change the trajectory of your business.