So, are you planning to scale your business or startup? If yes, congratulations. How can you grow your business to a reputable company? Scaling up requires strategy since you can scale up too fast and end p with organizational problems. You also need to know when to scale up your business to avoid premature scaling. As such, if you want to scale your business, there are a few tips you need to be aware of.
How to Scale-up Your Business
Evaluate if Your Business is Scalable and the Plan
The first thing you need to o is to evaluate your business and how it is performing. Determine if the business is scalable and what to do differently, unlike the past. You also need to figure out how scale-up changes will affect your business. In this case, you need sales, customers, orders and revenue growth forecast.
If your business or startup is to scale, then you need to plan. Have a forecast of the revenues against your business’s expenses and determine if the company is sustainable. If the expenses go high, then the revenue needs also to increase to sustain the business.
Find Out What is Your Business Cores
You need to identify your fundamentals in business. Most businesses fail because they scaled up too quickly before gaining traction. It would be best if you do the following.
- Make sure your business products and services are fit for the market
- Identify the primary consumers of your products
- Identify the marketing channels for your business that have the most significant Return on Investment (ROI)
- Make sure you have enough funding to scale up
Secure More Funds
Any business requires funding for its sustainability. You do not want to scale a company that will collapse immediately due to insufficient sustainability funds. You may need to hire more staff, more marketing and advertising. The best source of scale-up funds is bootstrapping. However, it may take some time to raise funds, but it is the safest method.
A Chatham House research shows that businesses across Nigeria, Tanzania, Uganda and Zambia face scaling problems because of limited access to mid-scale finance for SMEs, a lack of capable managers, poor infrastructure – especially electricity and roads – a constrained pool of skilled workers, and corruption.
Automate Your Operations
It would be best if you streamline your business processes and operations by investing in technology. For instance, you can automate your billing and payroll for accuracy to get rid of cash loopholes. Using the right software is also essential. It would help if you automated your business marketing strategies.
In some instances where it is not possible to automate, you can outsource. Even as you outsource, make sure that your business cores are under your control. Other minor services can be outsourced. When you are through scaling up, and the business has stabilized, you can take back the outsourced duties.
Hire Qualified Staff
You need to ensure that a business can work without you. Ensure that if you disappeared, someone else can come in and understand your processes and pick from there. Sometimes, you can assume that employees can replicate the success you have made in your business. You need a dedicated team, but also consider the worst-case scenario where you have customers with contrary qualities.
Analyze Critical Areas of Your Business when Scaling
When scaling your business or startup, you need to be very cautious about these areas.
- Hiring process. Do not be too swift to hire more specialists. Stay focused on your business fundamentals and only hire when it is essential to do so.
- Business expenses. Ensure that you spend only on essentials. There is always the temptation to overspend when scaling up to assume that the business will generate the funds.
- Building. After ensuring that your product is fit for the market and you have started to scale up, take some time before you can start adding more features to your products.
Acquire Additional Sales
There is a correlation between scaling a business and its sales. More often, when you scale, you can also expect a rise in the number of sales. As such, you need to seek additional stock. Ensure that you have the following:
- Adequate salespersons to work on your business leads
- Sufficient system to handle sales
- An established system to manage sales
- An automated system that will manage the billing and payroll processes
Build an Influencer Network for Your Business
The best way to ensure the sustainability of your business after scaling is through marketing. Get influential people who can tell potential customers about business’s products and services. It is a great way to scale up your business leads. You will find great influencers in social media and blogs.
Let Your Employees Understand the Fundamentals of Your Business
For any business to work, it needs to have a set of rules to adhere to. It doesn’t mean having a regime but having a code of conduct for all stakeholders. Let every employee understand the goals and objectives of the business. It will ensure that your employees focus their energies on the essentials of your business.
Scaling up a business is a process and requires great care. Before you can start the scaling-up process, you need to focus on your business growth barriers. Be honest and do not underestimate any possible risks. Give every detail of the process due diligence it requires.