Why Business Growth Stalls

Regardless of the economy, 15 percent of companies stall every year.  In a decade, 50 percent of companies stall.  Why?  A lack of consensus, focus, nerve and/or all of the above.

Steve McKee, author of "When Growth Stalls" and recent speaker at the 2009 PRSA Counselors Academy meeting, knows first-hand the growing pains of starting a business and the commitment to sustainability.

An Albuquerque-based business and marketing counselor who has experienced and recovered from stalled business growth, McKee points to several key internal factors that can contribute to the "death spiral":

• Lack of consensus - Managerial disagreement at the top often inhibits business growth, particularly in a highly competitive environment. Motorola, maker of the world's first commercial handheld cellular phone, and Sears exemplify how a lack of executive consensus can affect the bottom line, particularly in an environment of changing economic dynamics and strong competition.
• Lack of focus - Take a look at Remington Shavers and Citigroup to see how companies tried to be too many things to too many consumers. Define your areas of specialty, and perfect them.
• Loss of nerve - When companies show a lack of consistency in their marketing programs, they're often sacrificing long-term goals for short-term gains - a sure sign of a growth stall. As a decision maker, you need to determine whether or not you're "investing in" or "spending on" marketing. Your answer can reveal if and how you've lost your nerve. As a side note, healthy companies are twice as likely to win creative awards for their marketing programs.

A common result of all of these factors is a death spiral from which it can be hard to recover.  To check out the health of your company, take this free self diagnosis.