Here’s a question that nearly every established business owner wants the answer to, especially. Why is growth so difficult?

The funny thing is that even when you have sufficient demand for your products and services, it can seem impossible to get past a certain level. In some cases, even, runaway demand for what a small company provides can perversely cause the wheels to fall off.

Now, here’s the thing. There isn’t any simple answer to the headline question. But one of the underlying issues is almost certain to be that the growing SME (small to medium enterprise) does things differently from an established bigger business. In a word, you’re not equipped to scale.

To understand this issue clearly, it’s necessary to have some understanding of how big companies work. For a lot of entrepreneurs, the reason you set out on your own is precisely because of the perceived ‘red tape’ and excessive overheads involved in getting done what seems to be simple things.

But, like everything in life, there is a reason for that ‘red tape’. Let’s take the function of Accounts Payable (AP) in a big organization and analyze it a little; this is a good one, because most SMEs, yours probably included, will have at least one or two big companies as suppliers or clients, depending on the nature of your business.

These businesses that are interconnected to your own, valuable as they may be, probably annoy you in the length of time taken to settle your invoices. You probably find it frustrating, as the little guy, that the Big Corporate Machine with all that cash, lets you starve while you wait for what is surely a pittance for them in the greater scheme of things.

But delve a bit deeper. That company might be publicly owned. It might have several hundred people who have the power to order goods and services required to keep business ticking over. It, therefore, needs processes to be sure that all purchases are legit and fall within accepted governance standards.

That is why AP processes exist, which for example, often kick off with you first sending a quote, getting a Purchase Order (which can itself seem a hassle), then invoicing, then settling down for a 30 or 60-day wait.

This process is, you will appreciate, is very different from the one your SME has for paying the suppliers, all of whom you probably know personally.

In fact, you probably use an Excel spreadsheet to keep track of payments; you might use multiple other spreadsheets or Word documents as essential tools to keep the business running.

When an invoice comes in, to provide a comparison with the ‘big business AP’ story, you either pay right away or make a calendar note to do so when it falls due. A very different way of doing things; more ‘organic’. More ‘feel good’. But not scalable.

When your processes are tied to low-level tools like spreadsheets or Word documents, you have a real problem. You cannot scale. You just don’t have enough hair to pull out or turn grey.

That’s why, should you do a great job of marketing and delivery and demand shoots up, your business could find itself in real trouble. The very growth you have managed to generate could ironically strangle the company: delivery starts to slip, the patience of loyal customers is tested, quality might take a knock, and your management team spends too much time at the office putting out what looks like out-of-control forest fires.

There are a number of reasons why businesses struggle to grow beyond what seems like an inevitable plateau.   The inability to scale is not the only reason that SMEs struggle to grow. Far from it. However, sticking with the idea of why failing to implement systems is a major cause of the inability to scale, when we’re encouraging an SME to make the transition from an accounting package to an Enterprise Resource Planning solution, we almost always encounter a mess of spreadsheets and other workarounds.

The owners of these companies realize that they don’t have the systems and processes to scale; they’ve reached the limits of their growth and need something that can keep track of an expanded enterprise, let alone create a growth marketing funnel.  That being said it is hard for business operators to change the habits that they have gotten used to.

It’s easier than ever before for you to start a new business. At the same time, it’s harder than ever before to grow your business!

Don’t believe it?

Of 31+ million medium to small businesses in the US, 93% of them say that they struggle with consistent growth.

Yep - Starting a business is as simple as filing a few pieces of paper (setting aside getting the funding and doing the right product ideation and strategic planning) while growing that business is a pain point, to say the least.

CEOs aren’t struggling to grow because they’re not taking enough initiative. In fact, most CEOs are working harder than ever!

But as was alluded to earlier, given the reasons behind why many entrepreneurs actually start businesses, reaching this point of limited progress and seemingly increasing red tape creeping into their businesses, it has to be especially frustrating.  That being said it is again, rather ironically a more common occurrence than one would hope for.

Why does this stagnation tend to occur with an overwhelming preponderance of businesses?  Obviously, some factors are specific to individual businesses themselves, or the markets they are in, or the systems that they have to build, however, there are a number of common ones we have identified that tend to be common in established businesses that have not managed to scale their growth.

Struggles with growth are a common issue that entrepreneurs often face. While there are many potential factors that can contribute to a startup's struggles, there are a few common causes that can hinder a company's growth. If you're an entrepreneur and your startup is struggling with growth, understanding these causes can help you pinpoint where you need to make changes and improvements in your business model.

 6 Reasons Why Instilling a Growth Marketing Playbook is Challenging to Implement at Established Businesses

1)The unwillingness of Top Leadership to Step Away from Day to Day Details and Delegate

Entrepreneurs are often great at being control freaks. The desire to control their own destiny is in fact a big part of the reason why they ultimately struck out on their own. While this allows some to be more strategic in their business moves when needed, it also means that they tend to delegate less often than they should. Failure to delegate properly can lead to quick burnout and can slow or even halt a business’s growth.

If you find yourself having trouble delegating tasks because you’re worried that nobody on this planet can do things as fantastic as you can, this rule might help you release your tight grip. For every 80% of the tasks you do, only 20% of them actually produce results. If these tasks have such a small impact on your business, you might as well delegate them out.

Many entrepreneurs under-delegate because it hurts. You know your business better than the person you hired. You have been doing their job since the beginning. When they struggle, it is hard to resist jumping in to do it for them. In order for them to improve, you need to stand back and watch them screw up. They will make mistakes and take longer than you would. Letting them do so is the only path to learning and improvement.

However, at the end of that, you get the joy of delegation. If you are hiring the right people, they will eventually be better at your job than you were. They can be more focused on their specific area than the entrepreneur ever could.  Moreover, 

Successful entrepreneurs play the game a little differently. They keep their eyes on the big picture. By zooming out and seeing the whole view, they can see where they can minimize their efforts while maximizing profits and growth. They see all of the processes that can be delegated, and they understand which ones they need to do for themselves.  Moreover, they recognize that delegation has a strategic organization-building aspect to it.   By delegating, they end up creating additional sources of leadership by essentially establishing experts in key areas of the business (ex; marketing, technology, operations, etc.) that take pressure and stress off of the founding entrepreneur(s). 

2) Misalignment Between Vision and Execution in Business

Misalignment between vision and execution in businesses can be a major challenge for any organization. It is not only detrimental to the success of a business, but it can also cause a lot of frustration and stress for its employees. A misalignment between vision and execution means that a company's goals, mission, and values are not being met by the actions of its people and processes. In other words, the company's vision is not being achieved in practice.

When investigating misalignment between vision and execution in businesses, it is important to look at the root causes. The main causes of misalignment are usually related to communication, leadership, and management. Communication problems can arise when there is a lack of clarity regarding the direction of the company or when there is a lack of alignment between the different levels of management. Leadership problems can arise when there is a lack of clear leadership or when there is an inadequate alignment between the vision of senior management and the execution of lower-level employees. Finally, management problems can arise when there is an inadequate alignment between the goals of the company and the processes used to achieve those goals

3) Poor Marketing Strategy & Positioning

One of the most common causes of startup struggles with growth is poor market positioning. This includes not having a clear understanding of who your target market is or having the wrong messaging and branding for your target market. When companies don't have a strong presence in their market, it can be hard to gain traction and grow.

4) Lack of Funding

Another common cause of startup struggles is inadequate funding. Many entrepreneurs don't have the necessary capital to launch their businesses or to sustain growth after launch. When entrepreneurs lack the resources needed to hire employees, purchase equipment, and create marketing materials, they can find themselves in a difficult position when it comes to growing their businesses.

Financial management also affects how a business allocates its resources. If a business is not managing its finances effectively, it may be unable to make proper investments in areas such as research and development, marketing, and personnel. Without these investments, businesses may not be able to take advantage of new opportunities or develop new products or services that would help them grow.  Poor financial management also affects the ability of a business to access capital. Poor financial management could mean that a business has difficulty obtaining loans or other forms of financing, which could hinder its ability to invest in new equipment or hire additional personnel. Without access to capital, businesses may not be able to grow or expand as quickly as they would like.

5) Inability to Instill Efficient Systems and Processes that Leverage Existing Resources

Startups also sometimes struggle with growth due to inefficient use of available resources. When companies don't have the personnel or technology to effectively manage their operations and handle customer inquiries, they can quickly fall behind in the competitive marketplace. Without efficient processes and systems in place, startups can find it difficult to keep up with the competition.

6) Failure to Recognize and Adjust to Market Trends

Finally, another cause of startup struggles with growth is an inability to identify market trends and adjust accordingly. It is important for entrepreneurs to stay informed about current industry trends so they can anticipate customer needs and stay ahead of competitors. By failing to identify changes in customer demands or industry trends, startups can find themselves unable to keep up with the competition and unable to grow their business.  Part of this comes from an inherent lack of a strategic orientation that is present with founding entrepreneurs that tend to have a day-to-day task orientation, which makes it difficult as mentioned earlier to step away from the day-to-day details and see things from a different perspective.

How to Instill a Growth Marketing Culture Within Businesses Struggling to Scale.

Now that we have established some of the common reasons that many established businesses struggle to scale, let us look at some things businesses ought to do in order to instill the growth marketing mindset and culture that can help propel past the seemingly inevitable plateau that businesses often run into.

Recognizing and overcoming the common pitfalls associated with growth is essential if your business is to continue to grow and thrive. Crucially, you need to ensure that the steps you take today don't themselves create additional problems for the future. Effective leadership will help you make the most of the opportunities, creating sustainable growth for the future.

6 Steps to Ensure that a Growth Marketing Strategy Is Put in Place at Established Businesses

1)Keeping up with the market

Market research isn't something you do as a one-off when you launch your business.  Too often it is Business conditions change continually, so your market research should be continuous as well. Otherwise, you run the risk of making business decisions based on out-of-date information, which can lead to business stagnation or failure.

The more you succeed, the more competitors notice - and react to - what you are doing. A market-leading offer one day may be no better than the average a few months later.

As products (and services) age, sales growth and profit margins get squeezed. Understanding where your products are in their lifecycles can help you work out how to maximize overall profitability. At the same time, you need to invest in innovation to build a stream of new, profitable products to market.

Published information can provide useful insights into market conditions and trends. As a growing business, your own experience can be even more valuable.

You should be able to build up an in-depth picture of what customers want, how they behave, and which of your marketing approaches work best.

Taking the time to talk to key customers pays off. Your suppliers and other business partners can be important sources of market information. You should encourage your employees to share what they know about customers and the market. You may want to carry out extra research as well - for example, to test customer reaction to a new product. You might do this yourself, or use a freelance researcher or market research agency.

2) Learning to start planning ahead

This stems from the previous point The plan that made sense for you a year ago isn't necessarily right for you now. Market conditions continually change, so you need to revisit and update your business plan regularly. As your business grows, your strategy needs to evolve to suit your changed circumstances. For example, your focus is likely to change from winning new customers to building profitable relationships and maximizing growth with existing customers. Existing business relationships often have greater potential for profit and can also provide reliable cash flow. Newer relationships may increase turnover, but the profit margins may be lower, which may not be sustainable. See the page in this guide on cash flow and financial management.

At the same time, every business needs to be alert to new opportunities. There are obvious risks to relying solely on existing customers. Diversifying your customer base spreads those risks.

Following the same business model, but bigger, is not the only route to growth. There are potentially other strategic options that might provide better growth opportunities. It's important not to assume that your current success means that you will automatically be able to take advantage of these opportunities. Every major move needs planning in the same way as a new business launch.

Bear in mind that every new development brings with it changing risks. It's worth regularly reviewing the risks you face and developing contingency plans

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3)Keeping a tight watch over cash flow and financial management

Good cash flow control is important for any business. For a growing business, cash constraints can be the biggest factor limiting growth.

Making the best use of your finances should be a key element in business planning and assessing new opportunities. With limited resources, you may need to pass up promising opportunities if pursuing them would mean starving your core business of essential funding.

Every element of working capital should be carefully controlled to maximize your free cash flow. Effective credit management and tight control of overdue debts are essential. You may also want to consider raising financing against existing business debts.

Planning ahead helps you anticipate your financing needs and arrange suitable funding. For many growing businesses, a key decision is whether to bring in outside investors to provide the equity needed to underpin further expansion.

4) The need to alter your Problem-solving Orientation

Most businesses often run in perpetual crisis mode. Every day brings new challenges that urgently need resolving and management spends most of their time troubleshooting.

As your business grows, this approach simply doesn't work. While a short-term crisis is always urgent, it may not matter nearly as much as other things you could be doing. Spending your time soothing an irritated customer might help protect that one relationship - but focusing instead on recruiting the right salesperson could lay the foundations of substantial new sales for years to come

.As your business grows, you also need to be alert to new problems and priorities.

For example, your business might be increasingly at risk unless you take steps to ensure your intellectual property is properly protected.

If you are focusing on individual marketing campaigns, you might need to devote more resources to developing your brand.  In fact, getting crystal clear on your brand identity might help to bring in marketing expertise to help grow your business, whether in the form of an employee dedicated to looking after day-to-day marketing responsibilities or an external growth marketing consultant that can run full funnel experiments while working to start the setup of a much-needed growth marketing framework.

Identifying the key drivers of growth is a good way of understanding what to prioritize.

A disciplined approach to management focuses on leading employees, developing your management team, and building your business strategy. Instead of treating each problem as a one-off, you develop systems and structures that make it easier to handle in the future.

5) The right systems.

Speaking of implementing the right systems.  Responsibilities and tasks can be delegated as your business grows, but without solid management information systems, you cannot manage effectively. The larger your business grows, the harder it is to ensure that information is shared and different functions work together effectively. Putting the right infrastructure in place is an essential part of helping your business to grow.

Documentation, policies, and procedures also become increasingly important. The informality that might work with one or two employees and a handful of customers simply isn't practical in a growing business. You need proper contracts, clear terms and conditions, effective employment procedures and so on.

Quality control systems can be an important part of driving improvements and convincing larger customers that you can be relied on.  Investing in the right systems is an investment that will pay off both short and long-term. You benefit every day from more effective operations. Even if you ever decide to sell the business, demonstrating that you have well-run, efficient systems will be an important part of proving its value.

6) Learning new Skills and attitudes

Entrepreneurs are the driving force behind creating and growing new businesses. All too often, they are also the people holding them back.

The abilities that can help you launch a business are not the same as those you need to help it grow. It's vital not to fool yourself into valuing your own abilities too highly. The chances are that you'll need the training to learn the skills and attitudes required by someone who is leading growth.

To grow your business, you need to learn to delegate properly, trust your management team, and give up day-to-day control of every detail. It's all too easy to stifle creativity and motivation with excessive interference. As the business becomes more complex, as alluded to earlier, you also need to develop your time management skills and learn to focus on what's really important.

As your business grows, you may need to bring in outsiders to help. You'll want to delegate responsibility for particular areas to different specialists or appoint a non-executive director or two to strengthen your board. As you start tackling a new opportunity, someone who has experience in that necessary activity can be vital.

For leadership problems, this may include investing in leadership development programs or training to ensure that senior managers are equipped with the skills necessary to effectively lead their teams. For management problems, this may include reviewing existing processes and implementing new ones if necessary to ensure that they are aligned with the company's goals.

For many successful entrepreneurs, learning to listen to - and take - advice is one of the hardest challenges they face. But it may also be essential if you are going to make the most of your opportunities. The entrepreneurs that tend to succeed in the long term and work beyond that seemingly inevitable plateau, often recognize their own limitations, even appoint someone else to act as managing director or chairman, or at the very least add strong sources of expertise to their board or as consultants.

Instilling a Growth Marketing Culture:  It’s about welcoming change

Complacency can be a major threat to a growing business. Assuming that you will continue to be successful simply because you have been in the past is very unwise.

Regularly revisiting and updating your business plan can help remind you of the changing market conditions and the need to respond to them.

You need to be fully committed to your strategy, even if it takes you out of your comfort zone. This may involve hard decisions - for example making employees redundant or switching business away from suppliers you have become friends with. 

But unless you're prepared to make these and other types of changes that go against what you may have gotten used to, you risk putting your business at a dangerous competitive disadvantage that prevents a growth marketing-focused way of operating that can help businesses push past the growth plateaus that plague many established businesses. 

If you are trying to instill a growth marketing mentality (and ultimately strategy) within your organization, why not arrange for a session with our expert growth marketing consultants? There is no obligation, and you will gain an additional perspective that can ultimately benefit your business.