- On January 25, 2017
What Does Scaling Your Business Mean?
One of the lessons that many experienced marketers and business owners will tell you is that you need to prepare your online business or company for “Scaling”. Making a business scalable means it is prepared to expand and grow when it has reached its peak. When a scale-ready business has hit the limit of what it can achieve in its current state, perhaps it has hit its product-market fit or has expanded as far as it initially set out to, it will begin to utilize more resources and start grabbing more market share in order to grow to the next level.
This sounds like a fairly obvious thing to consider, but you’d be surprised how many start-up businesses don’t make a plan for their own success. Many people are caught out when the time to scale up has come, and miss out on huge opportunities by staying small and playing safe. On the other hand, businesses that are overconfident have gone bust by scaling too early. Prematurely scaling your business means competing with stronger competitors before you have a foothold to do so, and dumping more money into growth than you can make back through your business.
When Are You Ready To Scale Your Business?
• You need to commit to scaling, and have the ambition and will to grow. Being half-hearted will hurt you far more than simply deciding you are happy where you are.
• Ensure you have a repeatable and consistent customer process. Make sure you have every step perfected.
• It’s important to have a strong infrastructure of systems ready to handle the more difficult tasks they’ll be running. Billing, invoicing, recovering owed money, bug resolutions and industry frameworks all need to be prepared and optimised.
• Scalable growth is about having exponential revenue growth with incrementally increasing costs, and you’ll need an appropriate amount of capital to support the higher cash output that comes with scaling.
• A skilled team is a necessity to thrive at the next level. Train your team to be ready for their new responsibilities and duties.
Why Would You Scale Your Business?
Scaling your business is the difference between your company earning £100’000 and £1’000’000. Growth of your business means growth of your profits. Effectively, scaling is about anticipating demand rather than reacting to it. It’s about wanting your product or service to be able to run at a high level without your personal input. It’s highly systematic, and it can be a big change for a small company to make their business more autonomous. It can make some business owners wary, making their company less reliant on the individuals and more reliant on the systems, but this obviously doesn’t negate how useful each employee is to the company. A scaled company should not, however, suffer any major loss of revenue from losing a particular person.
How Can You Scale Your Business?
• Have a set goal or value proposition. What are your aims in scaling up? Is there room in the market, and potential customers?
• Push more money into your marketing, but also focus on customer retention. Remarketing is a key aspect to consider. Build your brand and create a loyal customer base, and you’ll find it pays off massively over time as it keeps your profits steady and your customer base recommends you to others.
• Be experimental. Try various marketing channels and learn what the best method for your business is. Once you have the data, you will know what works and what doesn’t, so you’ll know what parts to cut and what to scale.
• Push your company into new territories. Expand your target location and export to new places. You may find your product is a big hit in places you never considered marketing it to.
• As was said before, you need to be able to leave the company to others. This is tough for a small business, but investing in process management will let the owner focus their efforts elsewhere and keep the level of quality steady.
• Many businesses find that running their daily operations and administrative tasks leaves very little time for scaling and growth. Outsourcing these services, such as accounting, marketing and PR, will ensure they are handled professionally and gives you and your employees more time to expand the business.