There are two valuable things that any entrepreneur desires - to have more time and more money. But if you don’t know how to invest and spend money properly when your business is growing, then you are stuck. A successful entrepreneur should be aware not only of launching a startup but of scaling up and growing their business. If the company is wasting time, customers will choose larger competitors.
Scalability is about capacity and capability. Does your business have the capacity to grow?
There are two main options: either you expand an existing business unit (e.g. offline store, office, marketplace), or create new ones based on the same principle. The key point is to determine whether your business needs to expand:
- stable increase in the number of clients
- lack of employees
- not enough manufacturing or delivery capacity
If you do not scale your business in this situation, you will soon face a number of problems, the biggest of them is unhappy customers. Here are the top 10 tips on scaling your business:
- Improving the sales system. The principle is simple: the better sales are organized, the more products can be sold, thereby increasing profits. Strategize what you need to do double or triple your sales, make a detailed sales growth forecast.
- Invest in technology. Scaling a business doesn’t come free, automation can minimize your costs and decrease manual operations. Combine multiple automation systems if possible (sales management, marketing automation, etc.). Don’t forget about the importance of social media.
- Expanding and updating the product range. Introduce new products and change outdated to modern ones.
- Open new offices, enter the national or international market. However, this option requires more serious investments.
- Move your business online by choosing a marketplace or creating your website. You can do it by yourself but the best option is to hire a professional team. Though, if you are on a tight budget, it’s enough to focus on social media and start a blog.
- Capture neighboring niches in the market. Create affiliate companies in related industries.
- Invest in employees to build a great team. As the business grows, it is necessary to hire more staff and you need to make them understand your business values. Implement the right environment where employees are motivated and rewarded. But don’t hire new staff too early.
- Franchising is a type of business growth strategy that means chain stores. However, it is not an equal partership but both sides can succeed. Franchising is widely used to enter the foreign market.
- Outsourcing of marketing and direct sales. It is similar to the creation of affiliate companies. Orders are processed at the head office, sales are made by partners, and profits are divided in half.
- Don’t take shortcuts and make compromises. When you decided to scale your business, the idea to reach the goal as fast as possible seems very attractive but every action requires time and the quickest way may have a negative impact.
There are many other options to expand the business, in any case scaling means that you need to make tough choices. Having the right strategy, excellent produst, services, and employees doesn’t always guarantee success. Sometimes it is necessary to try outside expertise. Evercode Lab can provide you with the right solutions to expand your business. Going online helps to access more customers and approach the target audience. We offer a full-time software development team to move your business online, launch a website, or a mobile app.