What’s holding back your business from hitting the next level?
When small business owners think about up-leveling in business or reaching the next stage of growth, more often than not business and mindset coaches come to mind. Or thoughts go to accountants or finance gurus who can analyse the numbers or marketing experts who can share their tried and tested formulas for increasing leads and sales.
I am going to share with you what I see, from a legal perspective, as the key areas that hold a business back from growth and up-leveling.
1. Thinking Small
Yes, that’s right. Thinking small. I see far too often small business owners operating under a sole trader structure, when that’s not the best structure suited to them or the business. The business owner started the business treating it as a side-hustle, not willing to invest fully until they ‘knew if it would work out’. Often a company structure is far more suitable (and preferable) for the business, offering greater asset protection, clearer boundaries, with greater flexibility for growth and expansion.
The reality is that if you are not operating under the best business structure for you, then you may be holding yourself back without realising it. If you treat your business like a side-hustle, or like a ‘little’ business ‘for now’, there is a fair chance that it will stay a side-hustle.
Go all in. Think big. And get the right business structure sorted.
2. Not outsourcing
As a small business owner, you are often wearing all the hats and doing all the things. You think you have to do it this way because your business isn’t big enough yet to deserve a team.
In my experience, this is not sustainable long-term, and it certainly doesn’t lend itself to growth. Taking steps to recognise your strengths as a business owner and being willing to outsource what you’re not good at to others who are, is key to growth and up-levelling in your business. That way, you have more time and energy to focus on revenue generation and growing your business.
Outsource and grow your team. In my experience you will never really ‘feel ready’. So get comfortable being uncomfortable, and outsource what is not in your zone of genius.
You can read more about outsourcing Outsource with ease in small business and A Legal Checklist For Engaging Independent Contractors.
3. Taking short-cuts on business legals
You have heard me say it time and time again, in business prevention is better than cure. Prioritising your legal documents – this includes your business terms & conditions, your website documents, independent contractor agreements and your employment agreements. These are all important ways you can ensure your risks are mitigated and the chances of being financially exposed due to being sued or a claim made against your business, are minimised.
The reality is you can’t afford not to prioritise these things in your business if you are serious about taking things to the next level. It only takes one claim, or one law suit, to bring a small business to its knees.
I have said this a million times – DIY is for Bunnings, not for your legals. So don’t sell yourself, or your business, short by taking short cuts with the most important documents you need in your business.
4. Overlooking small business consulting
When we hear the phrase ‘small business consulting’ we often think of generalist consultants, strategy, planning, and development. Legal support isn’t necessarily front of mind, but it should be.
When it comes to working with a business lawyer, having one as part of your team in business can be a game-changer. Building a relationship with a business lawyer who gets to know you and your business; your business values; your objectives, and what you stand for, can be an incredibly valuable and can save a lot of time and money.
Being able to get in touch with your business lawyer to bounce ideas for a range of different things, such as new service offerings; new directions; team growth, or working out how to deal with a tricky situation, can save significant time in terms of briefing a lawyer when you have an issue or need advice; spending time going over the background, or filling gaps that arise as you work through an issue.
When you are wanting to take your business to the next level, time often means money, and having someone ready to jump in when you need them can save you time, money and energy and allow you to drive the business forward efficiently and effectively.
5. Fear.
Yes, fear. Fear of going all in. Fear of failing. Fear of rejection.
When fear kicks in, a business owner thinks small; chooses not to invest, and treats the business like a side-hustle. In my experience fear and limiting beliefs really hold a business back.
Work through the fear; work through the limiting beliefs, and go all-in with your business. Only then will you be able to achieve next-level growth in your business.
There is a lot to think about when you are growing your business. We talk more about some of the fundamentals for small business owners in this article: Building Your Small Business | The Beginners Handbook.
Don’t hesitate to get in touch with us if you need help.