Small Business: Don't ignore stagnation

In these tough economic times, it's easy for your business to become stagnant.

Despite your best efforts, its ability to grow may be inhibited by many factors, ranging from purely economic to operational.

Being able to identify your businesses' top growth barriers before they become an issue could mean the difference between success and failure, say experts.

"A lot of business owners are incredibly myopic," explains Rob Basso, chief executive of Basso On Business, which helps small and medium-size businesses achieve their goals, and president of Advantage Payroll Services in Freeport. "They only see what's directly in front of them, and they don't look at their business holistically."

Oftentimes, it requires taking a step back in order to see the bigger picture and anticipate growth barriers before they occur, says Basso. Common barriers are:

1. Lack of access to capital: The downturn has made it more difficult for entrepreneurs to access funding, says Basso. Friends and family could be one alternative, he notes. You may also consider establishing stronger relationships with your local community bank so officials there get to know you and your business, he adds, noting relationship building is key.

2. Inaccurate brand perception: Often companies don't have a good handle on how their brand is really perceived in the marketplace, says Basso. A simple questionnaire to customers with specific questions about your brand can help companies assess the accuracy of their brand perception, he notes.

3. Poor delegation: Many business owners feel like they have to be part of all the decision making and the everyday minutia, says Andrea Feinberg, president of Coaching Insight Llc in Port Jefferson Station and author of "Time Junkie: 101 Ways for Business Owners to Break the Habit and Get More Free Time Now!" (Coaching Insight; $14.95). This slows them down and prevents them from dealing with more pressing tasks and "opportunities that no one else can handle except the business owner," says Feinberg.

Matt Silver, of Matt Silver's Ultimate Class Limousine and Ground Transportation Worldwide in Hicksville, fell into this trap. He would pick up calls in the office to help out, which was taking away from his other duties. This past November he hired another reservationist, which has given him more time outside the office to devote to sales. "I've been able to close more deals," says Silver, who worked with Basso.

4. Having a false sense of reality: Over the past couple of years, the marketplace has changed rapidly, says Feinberg. Unfortunately, many companies have been slow to respond to these changes, she adds. They may be promoting the wrong product in the current economy or may no longer be in touch with customers' wants, says Feinberg. "You have to be constantly aware of how the market is changing," she notes.

5. Poor planning: You have to devote time to plan and manage the growth of your business, says Nick Hughes, president of Your Planning Partners, a business advisory and growth strategies consulting firm in Toronto, Ontario. It's always difficult finding time to do this, but if you delegate some of your work, it will make it possible, he says. Set aside 45 minutes each day devoted to growth activities, Hughes suggests. Commit to it and let everyone know that only "a disaster of major proportions will cause you to change," he says.

6. Not harvesting core customer base: Gaining new customers is always critical to any business, but many businesses miss the boat on targeting their existing client base, says Hughes, who offers more tips at your planningpartners.com/pdf/con quering.pdf. Provide consistent superior customer service and produce more of the products and services they need, he advises.

Other growth barriers

1. Failing to seek help or advice

2. Lack of focus

3.  Poor budgeting and forecasting

4. Undefined job roles

 5. Ill-suited staff

 6. Undocumented systems and processes

 Sources: Andrea Feinberg, Rob Basso, Nick Hughes