Scaling up your business is all about finding a way to take things to the next level. What exactly does this mean? Small business scaling lets you handle ever-increasing demand without the need to drastically increase your costs or resources at the same time. Whereas growth may refer to attaining more of any number of things (such as resources, human capital, technologies, etc.), scaling refers to a company’s ability to efficiently and sustainably expand.
When to Consider Business Scaling
Despite the no-doubt major benefits of scaling up, doing so too quickly or when you’re not ready can have negative and even terminal effects on your company. Therefore, it’s absolutely critical that you ensure your company is ready to make the leap forward. First and foremost, ensure your business is stable; before even considering changes, this needs to be established. Next, consider whether the demand is actually there. Are you looking to scale up because of the benefits alone or because there is a genuine need for it? Last, do you have the funding or resources in place to make this happen? Don’t needlessly drive yourself into debt! Some statistics show that 70% of startups find it hard to scale their businesses, so preparation is key.
How to Approach Business Scaling
With the right conditions in place, it’s time to start scaling up your small business. But wait… before you start hiring new staff, buying new systems, and expanding your portfolio of expenses, there are some very important questions to consider.
Are you setting realistic short- and long-term goals? While this is an exciting time, it’s fundamental to the future success of your business that you set goals that are achievable given what you’re working with. You can aim for the stars, but you have to do it one step at a time. This is where proper strategizing to increase sales comes into play.
Do you have high-quality employees who can handle the increased demand? Rather than simply upping the number of staff on hand, your best course of action is to ensure each of your employees and/or partners are the best they can be in all aspects of your business. Think of your core team as future managers in their various fields of expertise. Are they up to the task?
Can your specific day-to-day operational tasks be easily scaled up? An unfortunate reality is that sometimes the way we do things is easy for smaller-scale operations, but when you try to do the same thing for many more products, everything seems to get tangled up and messy. Make sure to test out your work processes and ensure they’ll work when the demand is in droves instead of batches.
Keep Costs Low when Scaling your Business
One of the biggest challenges faced by businesses that are looking to scale up from being a quintessential “small business” is keeping costs low while reaping the benefits. Too often, the excitement of opportunity leads to more loss than gain. Prioritize doing a proper cost analysis to see where you can save money and negotiate better rates. Consider outsourcing some of your tasks to avoid the overhead associated with expanding your offices. If all else fails, yet the other conditions for scaling up your small business seem to be right for the picking, you may want to seek funding options.