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PwC’s 11th Global Family Business SurveyFriday, 05 May 2023PwC’s Family Business Survey 2023 comes at a time of great change. The optimism of a post-covid world has been sorely tested by the geopolitical
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A guide to family business succession planningFriday, 11 February 2022Succession planning is one of the most sensitive issues, and COVID-19 appears to have concentrated minds in this area. Topics such as
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Tánaiste and Minister Donohoe launch new €90m fund for Irish start-upsThursday, 10 February 2022The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD and the Minister for Finance, Paschal Donohoe TD launched a new
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MAIN BARRIERS TO GROWTH IN A BUSINESS
There are a lot of barriers when it comes to growing your own business. Micro businesses find that funding is their main obstacle is funding, Small Businesses have trouble with national regulation and Medium sized enterprises face the impact of EU Legislation. There has been a study completed over 300 successful owner-managed firms over a 10-year period they found that there were quite a few common Barriers to Growth: 1. The Planning vacuum - owner-managed firms with business plans performed better than those without.
2. Muddled marketing - the most successful growth businesses had a superior product/service, a superior reputation and a better understanding of customer needs They achieved growth through focus & concentration rather than diffusion of effort.
3. Mismanaged change - fail to recognise the different phases of growth through which the firm passes and to manage that transition. Each phase of growth calls for a different approach to managing the business but most founders tend to try to run the business in much the same way as it gets bigger.
4. Meddling and mis-spent time - most owner-managers spend only 10% of their time on planning the future competitive strategy of the business and improving its performance. They prefer to focus on the day-to-day operation of the business, checking and overseeing the work they are paying others to do.
5. The wrong objectives: - many have none. Of those that do, they have the wrong objectives - commonly concentrating on sales or turnover growth. Less than a third of businesses set their objectives in terms of profits and margins.
6. No financial strategy - many simply use bank loans and are unaware of other sources of funding. Also a lack of budgeting and control.
7. The motivation of the founder - often the founder does not want to grow the business. Firms need to overcome these in order to grow and succeed in their business.
Source: Barrow (2001), Study by Institute of Chartered accountants in England & Wales (1996) |
