- Posted by: VuTrades
- Category: Bookkeeping
It sounds simple, but you’d be surprised at just how many businesses ignore their customers. As an entrepreneur or business owner, it’s easy to become consumed with growing the business that you forget the people you want to serve. Speak to influencers and see if you can find someone willing to help grow your business.
Startups can also consider venture capital and bring on experienced investors with the right contacts to help them scale. There’s no reason How to scale a business you have to do all the heavy lifting when it comes to scaling. Consider potential partners you could work with to score more customers.
The amount of risk you’re willing to take
You can calculate your conversion rate by dividing the number of conversions by the number of website visitors and multiplying that number by 100 to get a percentage. For example, if you had 100 sales from 1,000 visitors, your conversion rate would be 10%. Your conversion rate is the percentage of your website visitors who took a desirable action, from clicking on a button and filling out a form to making a purchase. Most websites have many conversion goals, and each has its rate.
However, it’s important to remember that your customers should always be your top priority. After all, without customers, you wouldn’t have a business to scale. Finally, the third step you must take before scaling your business is to standardize processes (and make sure that they are working). A lack of leads is a sign that a business is slowly taking on water. And rather than fix the holes, they want someone to provide buckets to bail them out.
Finally, always consider the question of how your customer will benefit from your decision to scale up. Whatever your goals may be, make sure they are specific, measurable, and achievable. Getting specialists into the business will need to happen at a certain point, but for scaling purposes, having a generalist approach can help in several areas. We asked them to give our clients a preferred discount not available to the public. For us, we requested a modest commission each time someone made a purchase.
The type of business you’re in
However, scaling your business is no walk in the park—any business owner who claims otherwise is LYING to you. I have personally built and sold two businesses, one of which grew to over $25 million in revenue, which then sold for 8+ figures. And let me tell you, it was hard; rewarding, yes, but challenging. Automation is great for scaling a business since it creates repeatable workflow at a lower cost and gets greater efficiency out of your team. You can automate anything from information passage to task logging.
In the age of information, the buying process begins in Google’s search bar. For instance, GE Capital Retail Bank’s Major Purchase Shopper Study shows 81 percent of customers research major purchases online before buying them. Knowing people want more information before buying means you must provide facts, stats, testimonials, and reviews on various brand touchpoints like your website and social media accounts. The first set of steps is about how to determine if your business is scalable at all. The second set has tips on how to lay a solid foundation for your scaling strategy.
How to Write a Business Proposal [Examples + Template]
These team members are excellent at handling various tasks and can be trained relatively easily when it comes to scaling operations. Scaling, however, is about growing your business in a controlled manner. This means expanding in a way that doesn’t sacrifice your company’s quality or culture. The goal of scaling is to increase efficiency and grow the business in a controlled manner.
Aside from automation, standardizing your business processes will help as you build your team. Documenting and distributing a clear set of instructions to the personnel responsible for handling a certain activity will make scaling your business that much smoother. By focusing on scaling rather than merely “growing” your company’s finances, you can generate greater revenue without ramping up costs or diminishing resources along the way. Many small businesses are able to achieve fast growth but aren’t necessarily equipped to scale.
- To attract more customers on a regular basis, you’ll need to leverage marketing tools like social media, content marketing, podcasts, advertising, and more.
- On the other hand, scaling means increasing revenue while keeping costs down, and it all boils down to how the business can prioritize efficiency.
- It’s about responding to growth, and adjusting your business model accordingly.
- As a result, you will be able to focus more on maintaining your product’s quality.
- Hire employees or contractors, or embrace a franchise model as your operation scales.
As Chobani founder Hamdi Ulukaya recently acknowledged by giving away a 10 percent stake in his business to his employees, it takes more than a founder to build a successful business. And as this report makes clear, though founders have a given expertise, growth requires an expanded skillset. As such, entrepreneurs are advised to build a team with broad and complementary skills. It also suggests accountants, bankers or experienced executives could also provide useful mentorship to scale ups.
You’re too busy to grow
Entrepreneurs want to scale, but not all businesses are ready for scaling. Some startups never make it big, so first, analyze if your business is prepared to scale up. As an example, consider a company putting in place a cost-saving piece of software that automates a once-manual task. This fosters scalability by allowing the company to take on more work without having to add more processes or people. Scaling in business means increasing the size and scope of operations without tacking on substantial costs to do so or negatively affecting other areas of the business. Scalability also refers to your business’s ability to perform under an increased workload or an expanded scope.
One of the first things you need to do to create a structured business is organising your business’s essential functions. Systems are so crucial for maintaining consistency and measurability in the business. They will also help you optimise what’s working and ensure that every person, tool, process, and so on works together within the company. I’ve got an entire blog and video all about Systems & Processes, so check that out if you want to learn more about implementing successful systems inside your business. You must have a firm belief and confidence that you will reach your destination. Successful businesses tend to be run by people with an unstoppable mindset.
In this blog post, we’ll guide you through 5 essential tips on how to scale your business. If you’re in ecommerce, our free Start and Scale course is the perfect place to start growing your business. The instructor, Gretta van Riel, has scaled 5 million-dollar ecommerce businesses, and she shares her strategies for success with you.
Trying to scale with the wrong people in seats will lead to disaster. Ineffective hiring methods are one of the biggest roadblocks to success in business—read more about this here in my free Six Winning Strategies Ebook. Then you must have a solid understanding of your financial numbers, including profit margins, sales conversions, taxes, trends, projections, etc. Spending money is fine if it’s justified and will immediately help you grow your business.
After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted. There are no live interactions during the course that requires the learner to speak English.
Scaling a Business
They then turned to dead-stock t-shirts, but they can actually be slower to process. Already-made shirts take longer to cut and evaluate for quality, so the brand has since expanded its source materials. Scaling up means a higher volume of sales and your supply chain needs to be equipped to handle that. Matt started Hug Sleep with an idea, a dream of entrepreneurship, and $2,500. The Hug Sleep is known as the blanket that hugs you back—a cozy, soothing experience based on the science of weighted blankets. The company has exploded since Matt founded it, thanks in part to an appearance on Shark Tank, where he and his wife, Angie, walked away with a $300,000 investment.
But this skips several important growth phases and can permanently stunt company performance. Scaling your business means you’re able to handle an increase in sales, work, or output in a cost-effective, reasonable manner. Your company can handle growth without suffering in other areas (e.g., employee turnover because of heavy workloads or a product that can’t be produced fast enough to meet demand). As your business grows, so do the possibilities for the future. Rather than aiming for overnight success, plan for sustainable growth by carefully planning your scaling strategy, finding the right financing, and updating your plan as it changes. While yes, potentially having new revenue streams can increase sales, they can also create havoc if you stray too far from your brand’s core offerings.
Taking that workload off Katie and Amanda means more time back to focus on the core of the business. Nail down where your business is right now, as well as where you want your business to go. Use the resources below to get started and consider the next steps in scaling as you create your plan.