It's well-known that it's not easy to face the challenges that could hinder a company's growth. This shouldn't be put off. Numerous studies have shown that SMEs in many countries are at high risk of failure. Randall Castillo Ortega, the founder of SME backer RACO Investment and a business optimization expert, discusses in detail how entrepreneurs can overcome the obstacles that prevent them from growing their businesses.
Studies reveal that 80% fail in five years and 90% fail in ten years. This alarming statistic can be troubling for anyone looking to start a business.
It can be difficult to lead an organization towards business growth. Castillo was able to compile the data using his knowledge of clients and companies. He also used this experience to identify the opportunities and problems that companies face when trying to grow and become more profitable.
The first problem in business is a lack of planning. Companies are often in a rush and don't have a plan. This can make it difficult to achieve your growth goals. The importance of strategic planning must be placed on the agenda for every company leader. Managers are responsible for setting the vision, mission, culture, action plans, and business goals of the company.
Castillo says, “Companies that don't plan are more susceptible to experiencing low productivity, low profitability, and economic losses.” Your company can lead and be a leader by planning. You will be on the wrong side of the scale if you don't plan.
The inability to create a solid marketing strategy is another problem that can slow down business growth. Castillo defines a “good” plan as one that is focused and achieves business goals. Because they execute processes and take steps that lead to sales, marketing plays an important part in business strategy.
Castillo says, “The marketing plan plays a crucial role in monetizing products and services sales.” It helps us to have a clear idea of what we want, how we want it done and when we need to do it.
A marketing plan can make a big difference. This will allow you to understand your strategy and provide direction for your company. A sales plan is essential to ensure that the company generates the revenue needed to fund its operations and strategies. A lack of financial resources can limit a company's ability to invest in its own growth.
You must grow your revenue if you want to expand. This requires companies to invest more and forces banks to lend money. Prioritizing the goals and strategies that will help grow your company is crucial when allocating resources. It is not a good idea to limit the company's growth by sticking to a budget.
The key to business growth is creating strategies that are profitable while still attracting, retaining, and selling customers. This is how companies can grow. Castillo discovered that many companies still employ old-fashioned strategies in order to attract customers.
Old-fashioned strategies include cold calling, visiting companies, sending them mailings with portfolios, and handing out business cards. When the goal isn't achieved, the sales team gets frustrated. They are stressed, feel frustrated, have high turnover of staff, annoyed prospects and low sales productivity.
Many companies lack a clear sales strategy. The company will grow in a sustainable and safe way if it has a sales plan. Castillo assures that sales planning will enable us to support growth in terms of revenue, understand the needs of our customers and set realistic goals.
Today, technology plays a crucial role in the development and growth of businesses. It can be used to market, sales, customer service, operations, and many more. These are the essential steps companies must take to transition into the digital age.
Refusing change and refusing the digital age will only cause more problems for the company. It will soon join the ranks of those companies who are unwilling or unable to adapt to the Internet age.
About RACO Investment
RACO Investment is a financial investment firm serving small- and medium-sized companies in Panama and Costa Rica. It was founded by Randall Castillo Ortega, an expert financial adviser who has his roots in the import and export industry in Latin America. The firm has helped numerous startups find the financial support they needed to get off the ground. It has also contributed bridge loans to assist those looking to restructure or improve their operations.
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