Small Business: The 5 Major Problems in the growth


Planning for growth is key to business development. Dealing with growth is an important issue for all developing companies. Successful business development depends on profitable growth.

The problem in the growth of small or start-ups can not be solved in isolation because they are interrelated. Companies that grow without considering key areas will eventually run into problems. This will result in crisis management which hindered the development of the company.

5 major problem areas

1. Lack of resources.

2. Management problems.

3. Insufficient system.

4. Improper marketing.

5. Lack of planning for the future

lack of resources

The financing is one of the main reasons for the failure of small business ventures. Lack of funding is a major problem for small businesses. Small businesses usually have four possible sources of funds are:

1. Goodwill profit.

2. overdraft and loan financing.

3. Equity additional funding.

4. Corporate Venturing

Cash is the key resource because, as well as being profitable, companies will be generating live

Board issues : ..

Every growing company must undertake process management development to ensure that the agency has the appropriate management that will meet present and future needs her. Management problems in terms of lack of quality, experience and depth of management, has always been one of the main reasons for business failure

The following areas shall examine :.

1. Development of the current management.

2. Additions to the current management.

3 complementary relationship with external consultants

Insufficient system :.

Small businesses especially in the beginning of operations are characterized by a number of informal systems that rely on the direct participation of management. Control systems are set up to provide information to management. Information necessary to control until you have control you can not increase productivity. The main areas where adequate current control system shall be examined include:

1. The financial system.

2. Production system.

3. Marketing system.

Inappropriate marketing

marketing problems are one of the main reasons for failure Business Start-ups. Before a company enters the boom there has to be a re-examination of the marketing approach. Marketing strategy will change as the company grows.

Lack of planning on

The crucial step in achieving success is proper planning for the future. But the total lack of planning or inadequate planning is a big problem of small business. This means that there is no systematic analysis research company, the environment and offer it in determining the way ahead.


A proper analysis of these key areas and adequate planning combined with proper management leads to ensure success and growth.


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