This is a situation that is so much more often met than what most aspiring businessmen believe: the startup should have grown a lot more than what actually happened. Various things can be done in order to fix a stagnant growth but you need to first realize why that happens. Only after pinpointing the problem you can devise various possible solutions and act accordingly.
There are various reasons why a startup does not grow fast enough but you can start with seeing if the following reasons apply.
Conversion Rates Are Too Low
Even when you do have enough of a pipeline you might not be able to convert very well. This means you waste many opportunities that could have led to various deals. In many cases the startups just run on a system that is not properly optimized. Sales representatives might simply just improvise and figure things out as they sell.
It is really important that the entire sales process is standardized so you can figure out what works and what does not work. You should never try to make sales when the process is not backed by numbers.
Not Taking Into Account New Market Competitors
If you take a quick look at the US business database you quickly figure out the fact that brand new companies are launched every single week in your industry. One of the big problems startup entrepreneurs have is not thinking about the fact that new competition might have appeared.
Every single startup has competitors. Many of them have been active on the market for a really long time. Others are only now appearing. If you just try to get customers from the established companies and set yourself apart from them you might miss out on those that manage to take customers from you.
Because of the constant competition we see in every single market or industry it is really important that we fully understand where we are at and what sets us apart. Adapting is really important. The one thing that stood out some time ago might no longer be true. For instance, a really common approach for startups is to launch similar quality products at a lower price. If new companies appeared on the market and they have a lower price, the initial unique selling point was lost. Something new has to be found if growth is to become reality.
Lack Of Re-Investments
Business growth without constant investment is basically impossible. You cannot expect to keep growing if you do not put back some of the profit into the business. Many entrepreneurs use only the initial successful setup that got them suitable growth at a point in time. As time passes and growth continues, it is inevitable that stagnation appears.
The experienced business managers will always keep a close eye on market innovations and do all that is possible to adapt. New technology has to be used and no matter what you might think at the moment, re-investments meant to increase growth speed are necessary for any business.