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Slow Growth in your business – Sell or find investment?

Facing the challenge of slow growth in your business/ Start-up then find the best solution available below.
BY Akshay Arora
Feature Writer, BusinessEx
Jun 30,2017

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:-

  • Owners have to form a proper RD department to do proper research on market requirements and risks available in market proper business long term planning.
  • Formulate new plans and strategies by properly understanding the requirements of the society that business needs to satisfy in order to enhance growth.
  • Find trusted investors that will provide necessary capital for business operations to carry out properly. A platform like businessex.com helps businesses to contact with interested trusted investors.
  • Innovation is a necessity to grow in todays environment and businesses must try to innovate their product as per the market demands.
  • SWOT analysis needs to be done to know strengths and weakness of business as well as opportunities and threats present in the environment for proper decision making.
  • Plan for future, rather than just acting on current strengths.
  • Analyse market potential and grasp the right opportunity at right time.
  • Learn to manage your company growth by hiring right people for the job, take right decisions, and maintain both financial and quality controls.

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.

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