So, you have a thriving business and feel it’s time to expand…but have you acquired the knowledge of how to scale your business? Read on!
If you ask the most successful people you know how they arrived at where they are, they are most likely going to tell you that they worked hard, took calculated risks, and persevered in spite of challenges.
This principle applies to everything in life, including growing a business.
Richard Branson, a high-profile entrepreneur, said that starting and expanding a business requires dynamics and numbered variables.
These include hard work, passion, and courage to make mistakes.
In order to start a business, you need to have adequate knowledge and funding.
You have to have a business plan and model.
You also have to know how to promote your products and/or services as well as attract customers.
Starting a business is not easy.
Expanding it is much more difficult.
According to the Bureau of Labor Statistics, fifty percent of small businesses fail within their first four years of operation.
Forbes also claimed that out of ten businesses, only two to three can survive for at least fifteen years.
If you want to stay in business, you need to have plans for growth.
Keep an eye out on the signs that tell you it is time to move on towards the next step.
Your growth strategy should include searching for new customers and revenue streams, as well as having better brand recognition.
Telltale Signs When Expanding A Business Is Necessary
Take time to study and research the different ways to grow a business.
You can read books and articles, watch video tutorials, listen to podcasts, and enroll in business courses.
Moreover, see to it that you learn how to determine when it is time for business expansion.
Usually, when you notice the following signs, it is time to scale up:
When You Turn Down Potential Opportunities For Business
It is important to build a customer base for stability and networking.
After all, customers are the backbone of businesses.
They are the support on which your income and business expansion are founded.
Thus, it is vital to accept customers that can help you establish your brand or company.
Over time, your business will grow.
You will have a bigger network and baseline.
When the time comes that you find it overwhelming to accept new customers, you have to scale up.
Scaling in business is necessary when client and customer rejections have to be done because of a lack of employees, time, or inventory.
Do not worry about losing opportunities.
If more customers show interest in your business, then this is a positive sign.
You just have to set new goals, scale-up, and come up with a growth strategy.
When Surpassing Previous Goals
New business owners often do not have enough personal data to refer to when predicting revenues, costs, time-frames, and other variables related to their objectives.
Nevertheless, you can use borrowed statistics to make estimations and set goals.
If you want to surpass previous goals, you may have to reevaluate and scale up.
Scaling your business can help you attain your new goals.
Rob Fulton, the owner of Exponential Black, said that scaling your business is necessary once your previous standards have made your original objectives too attainable.
Rather than comfortably reach your goals and meet your expectations, you should challenge yourself by expanding.
Set higher goals for yourself.
Making your goals attainable yet difficult is crucial in making your business grow.
When You Have Repeatable Sales And Strong Cash Flow
Expansion cannot be justified by profit alone.
You also need to have a good understanding of your business model as well as its track record.
These factors will allow you to make reliable predictions regarding your business.
In accounting, a good rule of thumb is to work towards the best, but plan for the worst.
You can say that your business has a good customer base if there is a narrow ratio between your best and worst results.
When you see proof of repeatable sales, you can consider scaling in business.
When You Have Reliable Infrastructure And Concepts
Businesses looking to expand should answer certain questions to determine if they are ready for expansion.
Ben Rubenstein, Co founder of Yodle, recommends asking yourself if you have any proof of concept or infrastructure to scale.
You need to determine if your products and/or services will actually sell.
This way, you can avoid common pitfalls, such as premature products and weak infrastructures.
If you are running a small business, you have to remember that every role is important and that your employees reflect the values of your company.
If your employees are not loyal and reliable, your business is highly likely to fail.
This is why you have to observe the attitude of your employees.
Do they communicate effectively?
Do they adhere to the mission and vision of your company?
Are they interested in making your business grow?
How proactive are they, if at all?
Do they jump at opportunities?
Are they willing to do more to grow your business?
If you are confident that your employees can really help grow your business, then it may be time to scale.
Do not forget to review your business expansion plan and concept.
Verify that your products and/or services match your standards.
You should also check if they remove the pain points of your target customers.
When There Is An Air Of Reduced Risk
Nobody knows what happens when something new is attempted.
Unexpected things happen all the time.
Nevertheless, you can reduce risks through adequate preparation.
You should only scale up once you are ready.
Do not readily jump at every opportunity.
Learn how to scale a business first.
Businesses looking to expand know that it is not wise to create unnecessary risks.
You should not make hasty decisions when you experience problems with your employees or profits.
Then again, if you notice at least one of these signs, it may be time to reevaluate your plans for growth and set out to achieve new heights.
You can have the best products, offer the most outstanding services, and hire the most competitive people, and still not get a guarantee for a smooth ride.
Everything in business, and in life, is uncertain.
This is why you have to watch out for these signs.
You should be able to spot when something is not working properly so that you can take the necessary action.
Set your business up to scale by measuring your performance daily and staying close to your finances.
How To Expand A Business Effectively
In order to successfully scale your business and earn more money, you need to set the right goals.
You need to create a plan, take the necessary actions, and stay persistent.
You have to leverage effective strategies.
Here are some tips on how to grow your business:
Use SEO Techniques
Search engine optimization or SEO is vital for every website and internet based company.
If you want to attain growth in business, you have to use the Internet.
You can set up a website or blog to discuss your products and/or services.
Upload images, videos, or articles that will describe your business to your target audience as well as pique their interest.
Make sure that you include relevant keywords or key phrases in your posts.
Ideally, you should put keywords in your titles, URL, images, and articles.
Be careful not to overdo them and only use keywords that are related to your products and/or services.
Otherwise, you may be penalized for keyword stuffing.
Create A Public Profile
When you hear the words ‘Apple’ and ‘Steve Jobs’, which one creates a bigger impact?
Apple is almost synonymous to Steve Jobs and vice versa.
Jobs was known to create a unique and amazing public profile, and you have to do the same.
If you want the world to recognize your company, you have to let everyone know about it.
Make investors aware of your presence.
Including customers, advisors, and strategic partners.
Do not just let people know about your business, you should let them know about you.
Use Social Media
Social networking sites are among the most effective yet least expensive ways to grow a business.
Nowadays, nearly everyone is on social media.
Your friends, family members, neighbors, classmates, co-workers, and acquaintances are most likely on Facebook, Twitter, and Instagram.
Social media is indeed a fast and easy way to connect and communicate with people from different parts of the world.
In addition, it is also a great way to reach prospective customers and promote your business.
For example, you can create a Facebook page for your brand.
Invite people to like your page and upload content that would attract the attention of your target audience.
Advertise With Facebook Or AdWords
You can reach your target audience through conversion-pixel tracking.
For instance, you can use the Facebook conversion pixel.
Also, you can track the activities of prospective customers by finding out if they added certain items to their shopping cart or wish list but did not make any purchase.
You can directly reach these people using ads so that they may be enticed to go back and make a purchase.
Google AdWords can be used to re-target them using search-related or contextual ads.
Set Up An Affiliate Program And Start E-mail Marketing
E-mail marketing is a powerful driver of sales for businesses.
Most of the biggest online marketers actually rely on the money they get via e-mail marketing as well as blog and website traffic.
You can grow your business by reaching out and establishing a connection with your subscribers.
This way, they can feel comfortable enough to trust you and give your business their loyalty.
Just as Ernst & Young said, you can catalyze the growth of your company by creating and fostering relationships.
Make sure that you only send useful e-mails to your subscribers.
Make them feel that you care about their interests.
Do not forget to send exclusive offers, discounts, freebies, and other rewards.
You can even send out greeting cards on their birthdays.
Refrain from spamming them with too many messages.
Collaborate With Influencers
Social media influencers are just as popular and influential as celebrities.
They have millions of followers who admire them and are willing to do everything they say, including buying items that they promote on their pages and channels.
However, unlike mainstream actors and models, social media influencers are not overpaid.
In fact, they are often willing to promote brands in exchange for freebies.
So, instead of spending too much money on billboard and print ads, you can work with social media influencers to endorse your products and/or services.
You can send them free items or give them a commission in return.
Hold Contests And Giveaways
People are generally enticed by freebies and rewards.
So, if you want to attract more prospective customers, you should hold contests and giveaways.
To qualify for your contest, they should either share your post or subscribe to your channel, newsletter, etc.
This would help spread the word about your business.
Word of mouth may be old-fashioned, but it is still one of the best ways on how to grow your business.
Create A Sales Funnel And Lead Magnet
Successful online marketers know that creating an effective sales funnel is crucial for scaling out businesses.
So, you should draw them in using lead magnets.
Then, you can drop them into sales funnels where they can be sold on autopilot.
Remember that the right sales funnel can be infinitely scaled.
Hire Sales Representatives
Aside from social media influencers, you can also hire sales representatives and give them commissions.
Working with these sales representatives is much cheaper than keeping a huge staff of sales personnel.
Then again, see to it that you train them properly.
You can give them training manuals and videos, so they can learn about your business and system.
Evaluate Financing Options For Business Expansion
You have to determine what kind of capital you need to expand your business.
Michelle Marciniak, an entrepreneur, and co-founder of Sheex recommended working with someone who is open to investments and are knowledgeable about the best ways on how to expand a business.
Learn From Competitors Who Have Successfully Scaled Up
Do research on your competitors as well as other successful businessmen in your field.
How did they do it?
How did they manage to achieve growth in business?
There is no need to hire a spy.
You may get the information you need from interviews and articles written about them.
Learn about their business expansion plan and model.
Also, find out where they are selling and how many staff members they have.
This can give you a rough idea on what you have to do to be successful too.
Do Not Hesitate To Outsource Whenever Necessary
You may not always have to recruit new team members.
Sometimes, it is more practical to outsource certain functions and tasks, such as article writing, web designing, and data encoding.
You may actually cut down costs if you outsource some of the work to freelancers.
They will still get the job done, but they will not go over your budget since you do not have to pay for their insurance and other employee benefits.
You can find freelancers online.
They can deliver their work via e-mail, for example.
Learn How To Delegate Responsibilities
As the team leader, you are expected to deal with major responsibilities.
However, you do not have to do everything yourself.
This is why you have team members.
Figure out which tasks you can delegate and which ones you need to do by yourself.
You can save time by delegating generic tasks to other people.
Refrain from micromanaging your team members.
This boosts morale and helps them improve professionally.
Build A Team Of Likeminded Individuals
As you scale up, you need more team members.
When it comes to hiring, you should be meticulous.
Choose people who have the same attitude and mindset as you.
Their values should also be in line with the values of your company.
Take note that quality and consistency are paramount to growing a business.
You have to choose the right people so that they can easily adapt to the culture of your company.
They should be able to get along with the other members of your team so that they can all stay motivated and engaged.
Rules keep everything organized.
So, in order for your business to flow smoothly, you need to set rules for your team members or employees.
Provide them with a manual or handbook.
Make sure that all the rules of your company are outlined and discussed in detail.
Remind your team members to follow strategies and stay in line with the objectives of the company.
They should also maintain the right attitude and mindset.
Help boost their morale by having team building activities and seminars.
To make your business grow and flourish, everyone on your team should be on board.
Running a business is tough yet rewarding.
Being your own boss gives you freedom and unlimited opportunities.
However, you should not allow yourself to be stagnant.
You should always strive for growth.
By learning how to scale a business, you can prepare yourself for expansion.
Do the tips above seem like they can help you clear the hurdles in your path to scaling and expanding your business?
Please share your thoughts with us!