Scaling Up Your Business: Here’s What You need To Know
The best entrepreneurs never stop looking to the future. They’re always searching for new ways to expand. New territories to conquer. New audiences to discover. That’s how the biggest companies reached their billion dollar valuations. They never stopped growing. It’s your job, as a business owner, to look to the next step. If you’re business is finally ticking over nicely, and generating plenty of income and demand, you’re ready. Here’s how you take things to the next level.
Dream big – If you’re going to scale up, you need a destination in mind. And that means dreaming big! If you aim for the moon, you’ll land among the stars. Now is the time to set goals and targets for your company’s future. How can you take your $10,000 business, and turn it into $100,000? And then $1 million? Keep setting yourself new heights to reach. By doing that, you can break them down into manageable chunks. You’ll get there, one day at a time.
Make sure there is demand – This is your golden rule when it comes to scaling up. We’ve seen businesses cripple their finances by expanding too early. As you’ll see in the next few points, scaling up means investing in more employees, bigger offices, and bigger marketing budgets. If you increase these overheads without any demand, you’ll devour your finances. Make sure your current level of demand is fierce. If it’s not, keep working until you’re at full capacity. Only then can you scale up.
Networking – Businesses tend to work a little like sports leagues. There are the lower leagues at the bottom and the elite companies at the top. Each have their respective networking circles. If you’ve got your sights set on the next league, your first job is breaking into those networking circles. Target the people in your industry that will open doors for you. If you’re scaling up, you need new clients, new suppliers, and a new audience. Networking is the only way to make these crucial connections.
Expand your premises – So far, we’ve talked about laying the groundwork for expansion. You’ve built a phenomenal demand for your product and services. You’ve set some key targets and goals, and you’re moving in the right circles. Now you’re ready to invest in expansion. The first step is bigger premises. You need new offices so that you can increase your staff numbers. You could set up your first factory to take control of production. Or invest in a warehouse to manage your stock better. You’ll need to rent or buy new premises. Start researching how to get a commercial mortgage, and devise a budget plan for expansion. Be warned, don’t buy more space than you need, but give yourself some room for further growth. It’s a fine balancing act.
Hire new talent – Once your new offices are in place, it’s time to fill it with experienced staff. If you’re stepping up into the bigger leagues, you need employees that can handle the pressure. Start by expanding your management team. Hire only the very best. At this point, invest in quality, not quantity. You’re still growing, and you need the sharpest minds with lots of experience in your industry. You need team members that can handle bigger accounts and important clients.
Take a step outside your business – At this stage, we often advise business owners to take a step back. Get out of the trenches, and delegate the day-to-day tasks to others. Some entrepreneurs find this difficult, especially if they’re used to doing everything. But, it’s time for you to step up and take control, as captain. Your sole job is now expansion. Let your employees handle the work on the ground. It’s time for you to focus on networking, connections, and grand plans.
Seek investment – This critical moment in your startup’s life cycle is a great time to talk to investors. Nothing gets Angel investors excited like evidence of expansion. It’s the perfect time to show that your business is growing. Plus, you probably need a good injection of funds to finance this big expansion.
Boost your marketing budget – Now, and only now, you can begin to increase your marketing efforts. It should be the last thing you do in this process. Make sure you lay the groundwork, and strengthen the foundations. Get the right team and production in place. Then, when you pump a lot of money into your marketing, you’re ready for the influx of business.
Scaling up requires a careful and strategic approach. Take one thing at a time, and build things from the ground up. Good luck!
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