Why are entrepreneurs finding it difficult to grow their business?
These could be the reasons:
- They don’t have enough funds to grow. Most importantly, many companies do not have a financial plan to start with. Plain and simple, they don’t know how to manage their funds.
- The most common practice for companies to get funds is to get a bank loan. This is not the wisest move because the cost of financing is high and the amount you get is low.
- Engaging family members as staff. Mainly for convenience, some company directors get their relative and family members to take up roles in the company. Most of them are not qualified or have the experience to handle the daily corporate matters, hence records and data are not kept in order.
- Most family run businesses are not willing to provide training for their staff. For whatever reasons, many companies neglect the pivotal requirement for efficiency. People need to be trained and updated on the current working trends and procedures.
- There is no proper corporate governance. As startups are usually an individual idea and later a few partners joined, they fail to standardise procedures as simple as a board meeting. Even to implement consistency in executing the daily working plans is overlooked.
- There is no succession plan. Everything is decided and implemented by the boss. Most will want to pass the business to their children, thinking that their children will be the appropriate successor. Fact be told that not all children are capable or have the abilities to run a company. Neither are they interested in the business.
Are you one of the entrepreneurs who have thought of expanding your company? Let’s make that your goal this year. Contact us for the Corporate GPS – the step-by-step guide to increase funding.