What does it mean to scale your business? For some business owners, it could involve hiring more employees to allow them to get more done. Meanwhile, others may see it as establishing themselves in a new country with a foreign market. Whatever scaling means to you, there’s one thing that every business owner can agree on: It isn’t easy.
Despite the challenge, scaling is often necessary to keep your doors open. It’s especially urgent if you’re struggling to meet customer demands.
Scaling your business is tricky. You can’t overlook factors such as the state of the market or your current finances. This article provides a basic roadmap of how to scale your business effectively to prevent ruin as much as possible.
9 steps to scale your business successfully
On paper, the process of scaling your business is linear. However, you may jump between steps as you figure out which approach best suits your business. Don’t worry; this is part of the journey. What’s important is you understand what to do next, whichever step you’re in.
1. Understand your company’s goals
Before hiring more employees or applying for a business loan, make the company’s long-term goals clear to yourself. Your company’s goals will be the foundation of your strategies and guide your decisions. It’s what you can use to measure how good opportunities genuinely are.
To illustrate, suppose you sell organic and eco-friendly products and aim to become a leader in the green market and promote environmental sustainability. One day, you receive an offer from a large retailer to sell your products in its stores nationwide.
It could be a great business opportunity on its surface. It could increase its sales, exposure, and customer base with the partnership. However, the retailer is also known for being unethical, wasteful, and exploitative. It does not share the same values or vision as your business.
Accepting the offer may compromise the brand image, credibility, and social responsibility. It may also face backlash from its loyal customers, suppliers, and partners who support its green mission. Therefore, the business should remember its long-term goal and evaluate whether this opportunity is worth the risk.
2. Establish a plan to scale
Goals don’t carry much value without plans and strategies to back them up. Without a clear roadmap, your efforts to expand could be inefficient.
Once you understand your goals, it helps to analyze the market to spot opportunities and threats you should prepare for. Research your target audience, analyze your competitors, and identify areas to position your business.
For instance, suppose you own a retail business. You’re considering scaling to new locations, but it isn’t clear where the best area is to set up shop. Market research—such as visiting the site or interviewing locals—will help you identify areas with high foot traffic, lower competition, and a demographic that aligns with your products.
3. Seek financial aid
The scaling process can get expensive. Your plan may require hiring more people or investing in new equipment or technology. It may even involve establishing a new office abroad. Where can you get the funding?
Many banks offer loans or lines of credit for businesses needing the money. Typically, these options come with lower interest rates and structured payment plans, making it easier to repay. According to recent business loan statistics, 56% of business owners apply for loans to pursue new opportunities or buy assets.
But banks aren’t the only sources of additional funds you can approach.
Venture capital firms and angel investors always look for promising start-ups with high growth potential. They can provide financial support, valuable guidance, and industry connections. Explore start-up investment companies to help you find potential individuals willing to fund your plan to scale.
4. Automate internal processes
As you expand your business, internal processes slowly become complex. One of the most effective strategies for managing this increased workload and driving scalability is process automation. Leveraging technology and software solutions, you can streamline repetitive tasks, reduce human errors, and enhance efficiency.
You’ll first need to identify repetitive tasks. These include data entry, report generation, and inventory management—highly predictable tasks performed regularly. Once you’ve identified the task to automate, you must choose the best tool.
There is a wide range of automation solutions available online. The best will depend on your needs. For example, a marketing agency might automate its social media scheduling using a social media management tool, allowing it to automatically plan and publish posts across different platforms.
5. Find strategic partnerships
The right partners can significantly accelerate your business’s growth and lead you to opportunities you might have encountered without them. Being selective is crucial when deciding who you want as a strategic partner.
Besides looking for businesses that complement your products or services, you need to be able to trust them wholeheartedly. It’s why it’s essential to cultivate relationships in your life continuously.
Influencers and thought leaders in your industry can expose you to a broader audience. Find ways to connect with prominent voices in your industry who align with your brand values and collaborate on marketing campaigns or co-created content.
Participating in industry associations and networks can help you connect with other professionals, stay updated on industry trends, and access valuable resources. For example, if you’re a small software development company, you could join an industry association to connect with potential partners and stay informed about emerging technologies.
6. Invest in and expand your team
A skilled and motivated team is vital for the successful execution of your scaling strategies.
Provide your employees with regular training sessions and opportunities for skill development. These will benefit your business and boost employee satisfaction and retention. Investing in their growth also fosters a positive work environment. Employees become much more productive in spaces where they’re comfortable.
As you scale, ensure you hire strategically to meet the evolving needs of your business. Look for candidates who have the right skills and align with your company’s values and long-term vision. That said, hiring isn’t your only option for expanding your team.
Many business owners debate over in-house vs. outsourced teams. While both are beneficial, they also have their limits. You may have more control over in-house staff, but outsourced teams are more cost-efficient. The most suitable staff expansion method will depend on your company’s long-term vision.
7. Implement customer feedback
Your business relies on satisfied customers to remain operational. The open secret about scaling—and running a company, in general—is to listen to what your customers want and offer it to them.
Conduct regular feedback surveys to gauge customer satisfaction and identify areas for improvement. If you’re an eCommerce-integrated business, you can send post-purchase surveys your buyers can answer to rate their experience and provide suggestions for how you can offer even better services. Additionally, monitor online reviews and respond to customer feedback promptly.
Communication with your customers doesn’t have to be one-way. Social media and email are excellent platforms to interact with and learn more about your customers. Personalized responses to their inquiries and concerns also indicate that you value their input, which can go a long way toward developing a customer relationship as you scale your business.
8. Monitor and measure your progress
It isn’t always clear whether you’re moving toward your goal. Monitoring your progress is vital to consistently ensuring you’re heading in the right direction.
You can use several metrics to gauge your performance; the most suitable metrics relate to your ultimate goal. For instance, if part of your scaling goals is establishing yourself in a foreign market, the number of leads you’ve generated can be a good initial indicator of how well you’re doing.
You must regularly review your progress to determine whether your chosen strategies are still the best for your current situation.
Unexpected factors, such as global pandemics or geopolitical issues, can complicate your original strategy and render specific actions unnecessary. As such, you may need to pivot or completely shift approaches depending on the circumstances.
9. Run experiments
There isn’t a perfect formula for scaling your business successfully; the right approach varies per company. You must continue to find new ways to improve your operations or provide value to your customers to rocket your business to success as you scale.
Wrapping up
The business landscape is dynamic and competitive. Scaling successfully is the ultimate aspiration for many business owners. You can be among those who achieve this by understanding the essential steps for scaling your business.
Understand your goal, create a plan, and take action. Banks and certified lenders are there for you if you need financial support to fund your operations. You can also meet with investors to help accelerate your business’s growth, including automating your internal processes and expanding your team by hiring in-house or outsourcing.
It helps to continuously consider what your customers want to ensure your business is profitable.
The journey of scaling your business is unique. You’ll encounter challenges you expected, and some are complete surprises. Besides your strategies and action plans, what’s important is that you continue learning to overcome mistakes and failures. The experience will make you a better business owner and a more resilient professional.
