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The Top 10 Constraints Leaders Face in Business Growth and How to Overcome Them

August 04, 202316 min read

As a business coach, I've had the privilege of working with numerous small business owners, helping them navigate the often-tumultuous waters of business growth. One common thread I've noticed is that leaders often encounter similar constraints that can hinder their progress. In this blog post, we'll delve into the top 10 constraints leaders face in business growth and provide practical solutions to overcome them.


1. Limited Resources

One of the most common constraints in business growth is limited resources. This can take the form of financial constraints, limited manpower, or even time constraints. For small businesses and startups, these limitations can be particularly challenging, as they often have to compete with larger, more established companies with far greater resources.

However, limited resources do not necessarily mean limited growth. It simply means that leaders need to be more strategic and creative in how they utilize their resources. Here are some strategies to overcome this constraint:

Prioritize Tasks: Not all tasks are created equal. Some tasks have a greater impact on your business growth than others. Identify these high-impact tasks and prioritize them. This ensures that your limited resources are used where they can make the most difference.

Delegate Effectively: As a leader, your time is one of your most valuable resources. Delegate tasks that can be done by others so you can focus on strategic tasks that only you can do. This not only frees up your time but also empowers your team and helps them develop new skills.

Business Coach Sean Golriz - All Success Academy

Outsource or Automate: Consider outsourcing tasks that are not core to your business, such as accounting or IT support. This can be more cost-effective than hiring full-time staff. Similarly, look for tasks that can be automated. There are numerous software and tools available that can automate tasks like scheduling, customer service, and marketing, saving you time and money.

Leverage Partnerships: Partnerships can be a great way to access additional resources. This could be partnering with another business to share costs, or partnering with a supplier for better terms.

Seek Funding: If financial resources are a constraint, consider seeking external funding. This could be a business loan, grants, or investment from venture capitalists or angel investors. However, be sure to understand the terms and implications of any funding you accept.

Invest in Training: Your team is one of your most valuable resources. Invest in training to improve their skills and productivity. This can be formal training or simply providing opportunities for learning and development in the workplace.

Limited resources can be a challenge, but they can also be an opportunity. They force you to be more strategic, efficient, and creative in how you operate your business. With the right strategies, you can overcome this constraint and drive your business growth.

Sean Golriz business coach with All Success Academy

2. Lack of Strategic Planning

A strategic plan serves as a roadmap for your business, outlining where you want to go and how you plan to get there. Without a clear strategic plan, businesses can quickly lose direction, waste resources, and miss opportunities for growth.

Strategic planning involves setting long-term goals, identifying the resources needed to achieve these goals, and outlining the steps to get there. It provides a clear vision for the future, aligns the team towards common objectives, and helps in decision-making.

To overcome a lack of strategic planning, leaders should:

Set Clear Goals: Start by defining what you want to achieve in the long term. These goals should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound). Having clear goals gives your business a direction and helps you measure progress.

Conduct a SWOT Analysis: A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis can help you understand your business's current position and identify areas for growth. It can also help you anticipate challenges and plan how to mitigate them.

Develop Strategies: Once you have your goals and SWOT analysis, you can develop strategies to achieve your goals. These strategies should leverage your strengths, address your weaknesses, capitalize on opportunities, and mitigate threats.

Create an Action Plan: Your action plan should outline the specific steps needed to implement your strategies. It should include tasks, deadlines, responsible persons, and resources needed.

Monitor and Review: A strategic plan is not a set-and-forget document. It should be regularly reviewed and updated based on changes in the business environment or your business's performance. Regular monitoring allows you to adjust your strategies and action plan as needed.

Involve Your Team: Strategic planning should not be a solo activity. Involve your team in the process to gain different perspectives, increase buy-in, and ensure everyone is aligned towards the same goals.

Strategic planning may seem daunting, especially for small businesses with limited resources. However, it's a crucial investment that can save you time, money, and stress in the long run. It provides clarity, focus, and a sense of purpose, all of which are essential for business growth.


3. Resistance to Change

Change is a constant in business. Whether it's implementing new technologies, adjusting business strategies, or restructuring the organization, change is often necessary for growth and improvement. However, change can also be met with resistance from employees and even leaders themselves. This resistance can slow down progress, create conflict, and hinder business growth.

Resistance to change often stems from fear of the unknown, comfort with the status quo, lack of understanding about the need for change, or concerns about the impact of change on one's role or job security.

To overcome resistance to change, leaders should:

Communicate the Need for Change: Clearly communicate why the change is necessary and how it will benefit the business and the employees. This helps to create a sense of urgency and convinces people of the need for change.

Involve Employees in the Change Process: People are more likely to support change if they feel they have a say in it. Involve employees in the planning and implementation of change. This not only provides valuable insights but also increases buy-in.

Provide Support and Training: Change often requires new skills or ways of working. Provide the necessary training and support to help employees adapt to the change. This reduces fear and uncertainty and increases confidence.

Manage Expectations: Change doesn't happen overnight, and there may be challenges along the way. Be honest about this and manage expectations. Celebrate small wins to keep morale high and show progress.

Lead by Example: As a leader, your attitude towards change can significantly influence your team. Show your commitment to the change through your actions. This sets the tone for the rest of the organization.

Provide a Safe Environment: Encourage feedback and be open to questions and concerns. This allows you to address any issues promptly and shows that you value your employees' input.

Overcoming resistance to change requires strong leadership, clear communication, and a supportive environment. It's about helping people understand the need for change, equipping them with the skills to adapt, and supporting them throughout the process. With these strategies, you can turn resistance into support and drive your business forward.


4. Inadequate Skills

As a business grows and evolves, new skills and expertise are often required. These could be technical skills, such as understanding new technologies or software, or soft skills, like leadership or communication skills. Leaders may find themselves or their teams lacking in these necessary skills, which can hinder business growth.

Inadequate skills can lead to decreased productivity, poor quality of work, low morale, and even loss of business opportunities. However, this constraint can be overcome with the right strategies:

Identify Skill Gaps: The first step is to identify what skills are lacking. This could be done through performance reviews, feedback from team members, or simply observing day-to-day operations. You should also consider what skills will be needed in the future based on your business goals and industry trends.

Invest in Training and Development: Once you've identified the skill gaps, invest in training and development to fill these gaps. This could be in-house training, online courses, workshops, or even mentoring programs. Encourage continuous learning and make it a part of your company culture.

Hire or Partner with Experts: If the skill gap is too large or if it's a skill that's not frequently needed, it might be more cost-effective to hire an expert or partner with a company that has the necessary expertise. This not only fills the skill gap but also brings in fresh ideas and perspectives.

Leverage Technology: There are numerous software and tools available that can automate tasks or make them easier to perform. This can be a quick and cost-effective way to overcome skill gaps.

Encourage Knowledge Sharing: Foster a culture of knowledge sharing in your organization. This could be through regular team meetings, a shared online platform, or simply encouraging team members to share their skills and expertise with each other.

Be Patient: Learning new skills takes time. Be patient with yourself and your team. Celebrate progress, no matter how small, and encourage a growth mindset.

Inadequate skills can be a significant constraint in business growth, but it's also an opportunity for learning and development. By investing in your team's skills, you not only overcome this constraint but also increase job satisfaction, improve productivity, and make your business more competitive.


5. Poor Decision Making

Decision making is a critical aspect of leadership and business growth. Decisions made without adequate information, analysis, or consideration of potential consequences can lead to costly mistakes, missed opportunities, and even business failure.

Poor decision making can stem from various factors, including lack of information, cognitive biases, time pressure, or lack of decision-making skills. However, with the right strategies, leaders can improve their decision-making process and make more informed and effective decisions:

Cultivate a Data-Driven Culture: In today's digital age, businesses have access to a wealth of data that can inform their decisions. Encourage the use of data in decision making. This means not only collecting data but also analyzing it and turning it into actionable insights.

Use Decision-Making Frameworks: There are various decision-making frameworks and tools that can help structure your decision-making process and ensure all factors are considered. These include SWOT analysis, decision trees, cost-benefit analysis, and more.

Seek Diverse Perspectives: Different people bring different perspectives, which can lead to more balanced and effective decisions. Encourage diversity of thought in your team and seek input from different team members before making major decisions.

Consider Long-Term Implications: It's easy to focus on the immediate impact of a decision, but it's also important to consider the long-term implications. This can help avoid decisions that provide short-term gains but harm your business in the long run.

Learn from Mistakes: Even the best leaders make poor decisions at times. What's important is to learn from these mistakes. Analyze what went wrong and how it can be avoided in the future. This can turn a poor decision into a valuable learning opportunity.

Balance Speed with Accuracy: In business, decisions often need to be made quickly. However, it's important to balance this need for speed with the need for accurate and informed decisions. Take the time to gather and analyze information, but also be prepared to make decisions with less than perfect information when necessary.

Improving decision making is not just about making better decisions, but also about improving the decision-making process. By cultivating a data-driven culture, using decision-making frameworks, seeking diverse perspectives, considering long-term implications, learning from mistakes, and balancing speed with accuracy, leaders can overcome the constraint of poor decision making and drive their business growth.


6. Ineffective Communication

Communication is the lifeblood of any organization. It's how information, ideas, and decisions are conveyed. However, ineffective communication can lead to misunderstandings, confusion, low morale, and decreased productivity. It can also hinder innovation and problem-solving, as ideas and feedback are not effectively shared.

Ineffective communication can stem from various factors, including lack of clarity, poor listening skills, lack of feedback, or even cultural differences. However, leaders can improve communication in their organization with the following strategies:

Clarify Your Message: Before communicating, be clear about what you want to convey. Keep your message simple and straightforward. Avoid jargon and ensure your message is understandable to everyone.

Choose the Right Communication Channel: Different messages may require different communication channels. For example, complex or sensitive messages may be better communicated in person, while simple updates can be communicated via email or a team chat platform.

Listen Actively: Communication is not just about speaking; it's also about listening. Listen actively to your team's ideas, concerns, and feedback. This not only helps you understand their perspective but also shows that you value their input.

Encourage Open Communication: Foster a culture where everyone feels comfortable sharing their ideas and feedback. This can be done by being open to feedback yourself, encouraging diverse opinions, and ensuring there are no negative repercussions for speaking up.

Provide Regular Updates: Regular updates keep everyone informed and aligned. This could be daily or weekly team meetings, regular email updates, or a shared online platform where updates are posted.

Use Visuals: Visuals can often communicate information more effectively than words. Consider using diagrams, charts, or infographics to convey complex information.

Train Your Team: Communication is a skill that can be improved with training. Consider providing communication training for your team, focusing on both verbal and written communication.

Effective communication is crucial for team collaboration, decision making, and employee engagement. By improving communication in your organization, you can overcome this constraint and create a more productive and harmonious work environment.


7. Lack of Innovation

Businesses that fail to innovate risk being left behind. Leaders should encourage creativity and innovation, and be open to new ideas and technologies.


8. Inefficient Processes

Every business, regardless of its size or industry, relies on a series of processes to deliver its products or services. These processes could be anything from product development and sales to customer service and invoicing. However, if these processes are inefficient, they can lead to wasted resources, decreased productivity, and customer dissatisfaction, all of which can hinder business growth.

Inefficient processes can be caused by various factors, including outdated methods, lack of standardization, poor communication, or lack of training. Here are some strategies to overcome this constraint:

Map Your Processes: The first step to improving efficiency is understanding your current processes. Map out each step, who is responsible, and what resources are needed. This can help you identify bottlenecks, redundancies, or unnecessary steps.

Standardize and Document Processes: Standardizing processes ensures that tasks are performed consistently and efficiently. Document these standardized processes so that everyone knows what to do. This not only improves efficiency but also makes it easier to train new staff.

Implement Process Improvement Methodologies: There are various process improvement methodologies, such as Lean, Six Sigma, or Kaizen, that can help you analyze and improve your processes. These methodologies focus on reducing waste, improving quality, and increasing efficiency.

Leverage Technology: Technology can greatly improve process efficiency. This could be software that automates certain tasks, tools that help with project management, or systems that improve communication and collaboration.

Train Your Team: Ensure your team has the necessary skills and knowledge to carry out their tasks efficiently. This could be technical skills related to their job or skills in process improvement methodologies.

Review and Improve: Process improvement is an ongoing task. Regularly review your processes and look for ways to improve. Encourage feedback from your team, as they are often the ones who know best where improvements can be made.

Improving process efficiency can have a significant impact on your business growth. It can help you save time and resources, improve quality, increase customer satisfaction, and even boost employee morale. It's a worthwhile investment that can pay off in the long run.


9. Lack of Customer Focus

Businesses exist to serve their customers. Leaders who lose sight of this can quickly find their business growth stalling. To overcome this, leaders should regularly seek customer feedback and strive to exceed customer expectations.


10. Failure to Delegate

Many leaders, especially those who have built their businesses from the ground up, struggle with delegation. They often feel that no one else can do the job as well as they can, or they fear losing control. However, this mindset can lead to burnout, decreased productivity, and hindered business growth.

Delegation is not just about offloading tasks; it's about empowering your team and fostering a sense of ownership and responsibility. When you delegate effectively, you give your team the opportunity to develop new skills and gain confidence in their abilities. This not only boosts morale but also creates a more skilled and versatile workforce.

To overcome the failure to delegate, leaders need to:

Identify Tasks for Delegation: Not all tasks should be delegated. Start by identifying tasks that are not a good use of your time as a leader. These could be routine tasks, tasks where someone else in your team has more expertise, or tasks that provide a good learning opportunity for team members.

Choose the Right Person: Delegation is most effective when tasks are assigned based on a person's skills and interests. Take the time to understand your team's strengths and weaknesses, and delegate accordingly.

Communicate Clearly: When delegating, ensure that the task, expectations, and deadlines are clearly communicated. Provide all the necessary information and resources, and be open to questions and suggestions.

Provide Support and Feedback: Delegation doesn't mean you abdicate responsibility. You should still provide support and guidance as needed, and give constructive feedback to help your team members improve.

Trust Your Team: Delegation requires trust. Trust your team to do the job, and resist the urge to micromanage. Remember, mistakes are part of the learning process.

By mastering the art of delegation, leaders can free up their time to focus on strategic tasks, reduce stress, and create a more engaged and capable team. It's a win-win situation for both the leader and the team.


Overcoming these constraints requires self-awareness, strategic planning, and a willingness to adapt and learn. As a leader, it's important to remember that growth is a journey, not a destination. It's about continuous improvement and learning from both successes and failures.

Remember, every constraint is an opportunity in disguise. By identifying and addressing these constraints, leaders can unlock their business's full potential and pave the way for sustainable growth.

As a business coach, I'm here to guide and support you on this journey. If you're facing any of these constraints and need help overcoming them, don't hesitate to reach out. Together, we can turn these constraints into steppingstones for your business growth.

Schedule a 30 minutes complimentary strategy call. This FREE, 30-minute consultation is all about value. No pie-in-the-sky. No generic ideas. No hard sell. Just straight-forward analysis and a plan to build the business of your dreams.

We will:

  • Review your marketing and sales chops…

  • Evaluate your team-building skills…

  • Discuss your gross and net profitability…

  • Explore your business transfer readiness…

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