In this competitive environment of the business industry, it is difficult for Small and medium scale enterprises to survive. The market is captured by new entrants with new innovations and also by the old competitors that are already doing well. SMEs and other businesses that are facing the challenge of slow growth, have to work things out either by finding more investors or by selling the business.
A point of inflection comes in every business lifecycle where an owner has to decide whether to find a new approach or keep working on as the way it is. If the owner of business understand the demand of business and take right decisions on right time then only it will be beneficial for the business to reach new heights, if not then business declines.
Every organisation wants to grow their business because of the efforts and the risk taken while starting their business. But every organisation must realise the fact the more they grow the more complex situations may take place. This paradox might be the reason why many firms are unable to sustain their growth of the business. Slow growth may not be as exciting as a rapid success, but slow growth may lead to healthier future. Sometimes it is beneficial to have slow growth rate as it gives more time to take wise decisions for the betterment of the business.
Slow growing businesses can adopt these ideas to achieve a better position in the market:-
Some entrepreneur may give up rather than facing the challenge of slow growth, if an entrepreneur doesn't fear and take this as an opportunity of handling complex situation and overcomes it then there is no stoppage in the growth of a business. Business can opt for any approach for investment whether from equity or debt. In equity, owners have to dilute some ownership to an investor in form of shares and in debt, owners have to take loans from any financial institution or banks and can also issue debentures to attract investment.
Finding investors is a difficult part at this stage, but now there is platform called businessex.com that provides an opportunity for local investors to invest and for local businesses to attract investors through franchising. This platform also helps to form a connection with mentors as well as incubators to increase the growth of business and new start-ups.
In the worst case scenario, if the business is below the breakeven point and not able to generate even fixed cost then business can take another approach to selling the business. If an owner feels that there is no scope of profitability in attracting investments or putting in more capital, then the last resort is the dissolution of business left with the owner. The owner must take some expert advice like from mentors available in same industry before finalising the decision.