There comes a time in every entrepreneur’s journey when they have to scale up to enable their business to keep growing. However, when done wrong, scaling up can end up working against a business, and is actually one of the main reasons why 50 percent of small businesses don’t make it past the five-year mark. If you’ve identified that it’s the right time to scale your business, it’s important that you take the time to evaluate and plan your approach so that you can prepare your business for the upturn in activity. This way, you will be well placed to take advantage of the new commercial opportunities, and your business will be able to sustain long-term growth.
Secure the necessary funding
Scaling your business will not come free. Whether you want to hire more employees, develop a new product, or invest in new technology, one of the key elements in scaling a business is knowing the kind of capital you’ll need to support your growth. If you have accumulated some savings that you can use for your scaling project, well and good. However, bootstrapping is probably not the best way to go as it may end up taking years to grow. A good idea is to seek financing from a bank, but before doing so, make sure you have figured out how you’ll repay the loan comfortably. Another option is to find an investor. However, be careful before bringing in any investors, especially if it involves giving up a share of your business.
Put effective systems in place
Scaling can’t be achieved if your business can’t function without you. To scale, you must implement standardized and repeatable processes that anybody in your business can learn and handle should you need to delegate. For example, one of the challenges of running a business is staying on top of financial processes such as payroll, invoicing, bookkeeping, and tax returns. Instead of doing these things manually, you can take advantage of cloud computing and the wide range of accounting software available today to track your cash flow, manage business accounts, and much more.
When you incorporate automated systems into your day-to-day operations, you can leverage the immense power of technology to reduce the time and energy you spend on boring, repetitive tasks so that you can focus on running your business. Keep in mind that if you are moving your business location, you will have to set up these systems before your move or else you’ll find yourself in a new workplace but unable to work. For example, before moving, you’ll want to ensure that your network cabling infrastructure is properly set up so that your business can function at full speed.
Build a great team
They say teamwork makes the dream work, and when it comes to scaling your business, you’ll need the right people to help you on your exciting journey. You want a team that not only has a diverse skill set but also understands your business goals and strives to achieve them without compromising on quality. Look for hardworking, motivated problem solvers who are masters of their craft and can handle the tasks you intend to delegate to them properly. Crucially, make sure that the people you’re hiring have the right attitude that fits perfectly with your company culture. If you feel the need to, you can find reliable partners to outsource some functions, positioning your business for better, faster, and cheaper scaling.
Scaling a business is a journey that begins from the ideation stage. To be successful, you must have an idea of where you want your business to be in the next year, 5 years, and even 10 years. Implementing the above-mentioned strategies does not guarantee that your business will grow, but it certainly puts you on the right path.