Imagine working hard to make your business penetrate the market. You succeed in capturing an audience and establishing your business as an authority in your niche. You’ve got loyal customers doing business with you regularly.

And then you hit a wall.

No matter what you do, you can’t seem to achieve the same growth rate as you did when you were building your business from nothing.

That is what you call a business plateau. It’s also known as a growth stall or scale stopper. It’s a normal occurrence that several businesses struggle with after reaching a certain level of success. While it will make you feel frustrated, this is completely surmountable. I’ve seen leaders rise to the challenge to find a way to keep the momentum of their business growth.

If they can do it, you can, too.

In this article, allow me to share how you can reignite your business growth to get past the plateau effect. I’ll share 2 strategies you can use and a secret weapon that can help you break growth stalls in the future.

What is a Business Plateau and How Does It Happen?

I like how one article on the Harvard Business School website described the plateau effect.

“The Devil’s Triangle: the place where a company seems weighted down by the bounds of its original start-up business model, a lack of experience by its founder(s), and an accelerating, expense-fueled burn rate through working capital and investor patience.” (Sean Silverthorne, Breaking Through a Growth Stall)

Based on this description, three things will keep your business in a state of plateau.

If the business uses the same start-up model…

While that business model got you through the start-up stage, it doesn’t mean it’s good enough for scaling to the next level. The needs of the business will change and become more complex as it grows. You hire more people and your processes change. If you don’t use the right model to accommodate these changes, it will be hard to maximise the business growth potential.

If the business leaders aren’t experienced enough…

As the leader, you need to grow with the business. Your business will only grow as much as your limitations. If you keep on growing, you’ll be in a better position to lead your business to greener pastures and opportunities.

If the business spending grows faster than the revenue…

There are many reasons why this happens. Sometimes, customer needs evolve. If the product fails to improve to keep up with these evolving needs, it’ll lose appeal. There are also times when business leaders fail to capitalise on new opportunities that can scale the business and make it more profitable.

What does this all mean?

Business plateau happens because leaders fail to keep up with the changing needs of the business and the market they cater to.

The good news is, you can break the plateau to move on to the next level. All you need is the right strategy that’ll allow you to open new opportunities that will bring maximum growth to the business.

2 Strategies to Overcome Business Growth Stalls

Two things directly affect your business and revenue growth: the products and customers. If you want to overcome business plateaus, you need to look for opportunities in these two areas.

Consider these 2 strategies to reignite growth in the business.

Strategy 1: Sell Existing Products

It’s always best to start with existing products because this is something you’re already familiar with. Through past sales data, you can analyse and come up with strategies to sell more of it.

When it comes to existing products, don’t just focus on the fast-selling ones. Bring out the slow-moving inventories and see how you can market them so they appeal to your customer base. Once you have your existing products ready, you need to start selling them to two groups of people.

To Existing Customers

Selling to existing customers is easier because they already know, like and trust you. They have used your product and they know what you’re capable of. Create a marketing campaign to highlight your products. Tie-up with an event or another business.

You can also use strategies like upselling or cross-selling to encourage them to buy more of what they usually do. Upselling is the process of convincing customers to buy a higher value of the product they’re already using. Cross-selling, on the other hand, involves recommending different products that complement the ones that the customer is already using.

For instance, your business sells notebooks. To upsell, you can offer leather-bound notebooks. To cross-sell, you can offer premium pens or personalised notebook covers.

To New Customers

Selling to new customers is more tricky because they know nothing about your business. You’ll have to invest in marketing strategies to specifically reach out to new customers - wherever they are. That means exploring new segments of the market or venturing into new territory.

Let’s go back to the business of selling notebooks. If you used to sell notebooks to students, try to venture into the corporate market. Sell your notebooks to business professionals. Tap into salespeople and offer personalised notebooks that they can use while in the field.

This would require you to adjust your marketing message to resonate with the market you’re trying to reach.

Strategy 2: Introduce New Products

While focusing on existing products is easier, there’s often a limit to what you can do with it. Your business will still grow, but it might not be sustainable enough to reach the level that you’re hoping for.

If you reach the limit of your existing products, it’s time to turn to new ones. There are two ways to approach this.

To Existing Customers

Think about your existing market and create a new product to solve issues they struggle with. You can start with products that complement existing ones. If you’re selling plain notebooks, create planners and journals. You can also create a more eco-friendly notebook that uses recycled materials. Or you can launch a new product line of book bags or pens.

Creating new products for your existing market is easier because you have data about their buying preferences. Since they are somewhat loyal to you, they’ll be more receptive to new offers. Communicating these new products is also more convenient because of the established channels and connections with them (e.g. email newsletters, social media, etc).

To New Customers

Launching a new product for a new set of customers is more complex not to mention riskier. This will require more investment in terms of capital, time, effort, etc. Given the risk involved, it’s crucial to conduct in-depth research on the new market. Identify gaps that need to be filled and create a product to meet that need. You also have to create the right message that resonates with the new market - something that will compel them to give your new product a chance.

While this requires more, this strategy can bring incredible growth to your business. You might even succeed in becoming a leader in this particular niche. Once you’ve conquered this market, it could open more doors and opportunities for your business.

The Role of a Business Coach in Preventing Plateaus

Focusing on the product and target market is crucial to reigniting business growth. But that’s not enough if you want sustainable growth. Sure, improving product sales and getting customers to buy more will boost numbers. But what about the team behind everything? The new products and strategies will require several internal changes in the business.

Can you and your team cope without burning out or getting off course? It’s important to think about the welfare of your team because it’s also crucial in preventing future business plateaus.

This is where a business coach can step in to help. A coach can guide you as you step back and reanalyse your business. They can provide both expertise and external perspectives - which may be more effective in spotting issues you may have missed because of familiarity.

Remember, overcoming business plateaus starts with an understanding of the current model, processes, products and services that your company is using. Only then can you identify why you’re falling short and how you can adapt to the changing needs of your niche.

A business coach can also help you plan a clear and actionable growth strategy that’s aligned with your long-term vision. Then, they’ll help you create programs to enhance your team’s capabilities - so they’ll have the skills needed to maintain and sustain your growth objectives.

Redefine Your Business Strategy to Reignite Growth

Setting up and sustaining a business takes a lot of work - especially if you find yourself unable to overcome a growth stall. These business plateaus are a common occurrence - but that doesn’t mean you’re powerless against them.

With the right strategies and guidance, you can redefine the boundaries and capabilities of your business - including the team that you formed to work behind it.

If you’re ready to break through your business plateau, partner with us. Together, we can explore strategic moves that’ll bring your business to greater heights. Feel free to book a complimentary 15-minute call here: https://www.butleradvisory.com.au/time-with-trent.