How to scale your small business in 5 easy steps
Kelvin started his shoe-making business with the #50,000 he got from his dad on his 20th birthday. Five years down the line, not only has he been able to build a profitable business that sponsors his lifestyle, but the business has also provided job opportunities for many and contributed to the development of his local community.
However, this didn’t just happen overnight.
His business started in his room at the university, and after graduation, he started working in his dad’s compound. As time went on and business grew, he knew he could no longer stay there, so, he had to move to a rented shop space where he was able to produce more footwear and employ more staff members.
After years of diligence and consistently pushing his brand, he got a DM for a shoe from a celebrity, and that blew up his business. Orders started flowing in from everywhere such that they had to reject some orders, and with this, he knew it was time to scale!
Scaling a business means setting the stage to enable and support growth in your company. It means having the ability to grow without being hampered. When you scale, you can produce more quantity of goods/services at the same quality and time frame, thus increasing revenue and profits.
In this article, we’ll examine the signs that your small business is ready for scaling, 5 ways to scale your business in no time, and mistakes to avoid when scaling a business. Let’s dig in.
Signs that your small business is ready for scaling
Premature scaling is the worst thing that can happen to a small business, as it can make you go under. So, if you think your business is ready to scale, check out these signs to be double sure.
1. Strong cash flow
A strong cash flow signifies that your business inflows exceed outflows. This means that you make good sales, can pay your employees, and fund other business expenses with little or no hassle. This is a good sign, showing that there is a great chance of success if you decide to scale.
2. Crushing all short-term goals
If you can crush all your business short-term goals, such as selling a specified number of goods/services per week, gaining a specified number of new customers at the end of a quarter, etc. but then you have difficulty reaching your long-term goals, then that can be your cue to scale up to enable you to achieve those bigger goals on a larger scale.
You should read: 4 Financial Numbers Every Small Business Owner Should Analyze for Growth
3. Being unable to handle all demands gotten
In addition, if you’ve been getting massive orders on your products, but have been unable to meet up, then it’s probably time to scale up to ensure you don’t keep turning customers away.
5 Ways to Scale Your Small Business
Now, here are 5 ways to scale your business, turning it from a micro/small business to a conglomerate. Let’s see them below:
1. Set SMART goals
SMART stands for Specific, Measurable, Achievable, Realistic and Time-bound. When scaling up a business, you need to set well-defined goals, which you can create business plans around.
For example, if you set a goal to make 40% more profits in the first 3 months of scaling, this will help you come up with plans on how to achieve it, enabling you to get everyone on board as to how they can contribute, aiding teamwork and goal achievement. You can also set short-term and long-term goals, and measure significant KPIs periodically to measure progress.
Related: How to get more customers for your business
2. Put in the right system and structure
Next is putting in the right system and structure that will make things work and produce the same level of quality, no matter how big things get. With the right structure and system, you can replicate your business values and quality at any level.
To achieve this, create a plan that guides operations across board, develop a chain of command and accountability system for each teammate, and equip each team member with the same skills and equipment across board to ensure consistency in output.
3. Get new hires and/or Train old team members to fill the skill gaps needed
With a business scale-up comes more demand in terms of manpower. So, start by identifying the new skills you need for your business to succeed, then plan on hiring new staff members or training old team members to fill the gaps.
When hiring, prioritize both the hard and soft skills, ensuring that you are taking in individuals with the requisite skills to do their work, and the right attitude to fit the company’s culture and serve your customers well.
4. Leverage technology
Technology has done so much good to the world, and it will do your business lots of good if adopted. With the right technology, you can automate manual and administrative tasks, freeing up time for more strategic work. This can reduce the number of new hires you need, since some tasks can be done with technology, with minimal human input.
Using technology can also help you gather data about your business, which helps in making strategic and informed decisions.
You should read: 6 Pricing Strategies to make your Customers buy more
5. Collaborate and expand to new markets
Collaborating with new partners is another strategic way to attract new customers to your brand, reach new markets, and add value. When scaling to a new location, you can collaborate with a complementary well-known brand in that location, to get people to know you. However, you need to vet whoever you are collaborating with to ensure you are on the same page, regarding brand values, goals, etc.
You should also look into expanding into new markets beyond your domestic reach. For example, consider shipping your goods to neighboring states or countries where you can begin to make a name for your business.
Related: The Power of Community for Small Business Owners
Mistakes to Avoid when Scaling a Business
Here are some mistakes you must avoid when scaling your business to avoid going under.
- Lacking a solid foundation
- Scaling prematurely
- Low-quality staff
- Not prioritizing quality
- Overlooking systems and structures that promote efficiency
Scaling with No Fears
Scaling your business can feel daunting and risky. However, if you’ve examined and seen that you have what it takes to scale up, then it is a risk worth taking. Get the manpower, funding, and grit you need, and take the leap of faith!
However, If you have the grit and willpower but lack the funds, then send us an email at hello@triift.africa or visit our website www.triift.africa to apply for business funding. We’ll be more than delighted to put money in your hands. See you on the other side.
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