Published on 15/11/2019 by Any Business.Com.Au

How to get over that 5 year profit plateau

Every new business business owner wants to grow their business at a steady rate until reaching their individual end goal.

Most small businesses experience growth in their first 3 to 5 years; but a business will inevitably face challenges that will affect this pace and invariably cause it to plateau.

The business may have great products, exceptional customer service, and a great customer base, but for some reason business growth has stalled.

There are a number of reasons to consider such as market dynamics, new competitors and financial constraints to name a few. These all point to one of the most common factors; where aspects of the business model have reached or expired their current capacity on a number of levels.

To break through a plateau, business owners should focus on identifying the reasons behind the plateau and then create some growth focused change.

Check out our suggestions for getting over that 3-5 year business hump.

Continue to invest

If your business is performing well, it's important not to stop scaling your marketing budgets or stop bringing in new talent. In fact, if you want to sustain and grow further the opposite is the way to go.

Many businesses lock their marketing spend down (or at the same spending level) because the business has grown and ultimately achieved its short-term goal.

If you want to keep this momentum; don't lock it down. Instead, increase it as the business grows.

Don't forget about other areas that need reinvestment too such as technology, infrastructure, and new talent.

Keep your eye on the ball

As a business, you want to be reactive rather than responsive. You must be up to speed on the market and the challenges ahead, in a nutshell - it's about knowing what's around the corner so you're prepared.

Develop lead generation strategies

Understanding, planning and executing a lead generation strategy is fundamental to any business and this is strategically imperative when it comes to growth and breaking through the plateau.

Take the time to understand your buyer and their journey. Focus on this first rather, than the sales process and adapt it to meet your buyer's journey and needs.

In summary

To be that business that is continually progressing and growing, as a business owner you must identify change, adapt and be 3 steps ahead of the game!

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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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