HOW TO SCALE YOUR BUSINESS LIKE A PRO

According to the U.S. Bureau of Labor Statistics, only 50% of businesses survive past five years, and just 33% make it to 10 years. While this might be due to a number of reasons, the inability to successfully scale is usually a major contributor. So the question is, why do we these businesses not scale successfully?

Scaling or scaling up a business means growing it in such a way that its revenues increasingly outpace its costs. While scaling your business is ultimately the goal of every startup/small business, it is not a straightforward path. It is a path prone to pitfalls, if not properly navigated. Scaling is necessary for business growth, but poorly executing it will leave your business right where it started from, spending more and gaining less.

Scaling blindly and carelessly is a disaster waiting to happen to your business. Certain businesses are resilient enough to make costly mistakes when scaling, and bounce back after. Not every business is that lucky. So in order to avoid making these mistakes that can set you back as a startup/founder, I will be putting you through a guide below, of the steps to take when trying to successfully scale your business.

⁠ ⁠1. Build a brand and not just a company

Once you have connected functionally with your customers, you need to connect emotionally as well. There are businesses everywhere offering the same thing you are offering. So why should your target audience look in your direction? This is where building a brand comes into play. Showing up authentically with a brand story that will resonate with your audience, make them feel a part of something important. Evoking an emotional connection in your consumers is what turns them into loyalists and eventually advocates for your business. Great branding is what sets you apart from your competitors.

2.⁠ ⁠Have a clear strategy, review regularly

Strategy is as important as vision. Having a laid out execution plan, and even a contingency for that plan is a must. Come up with likely scenarios and ideate around that. You should be able to adjust or adapt accordingly especially when challenges arise. When trying to scale your business what you need is a strategy that focuses on increasing revenue while also increasing efficiency. Let nothing suffer for the other. Review your strategies regularly to see that it is still relevant to the context of your business.

3. Manage your cash flow

If you can’t manage your finances, how do you attract investors in good faith? Your cash flow is the life of your growing business. Scaling comes with more expenses, you might need more manpower, more supplies, a bigger space, etc. These expenses often kick in before the revenue begins to come in, so it’s important to be very penny wise. Every expense made must be accounted for. Plan for unseen expenses , monitor your cash-flow, and optimize your strategy. Test your new products with an MVP, instead of doing a full scale production and wasting resources for a product no one is interested in. Finally, do not go into outrageous debts from your bank loans or suppliers.

4. Prioritize the customer experience

Invest in prioritising your customer needs and satisfaction on any given scale. This is an area in which it is easy to drop the ball. The head-rush of scaling your business must never make you lose sight of the customer experience. It’s a no brainer that scaling comes with a larger audience and therefore more demands to meet. Your customers are going to be needing hands on support. If you don’t scale up the customer experience as well, things break, support lags, delivery times increase, and frustration grows. Ensure that there are systems assigned to customer pain points, enquiries and suggestions. Making this one of your top 2 differentiation strategies will be a game changer for your business.

5.⁠ ⁠Be Adaptable

They say that with greater heights comes greater responsibilities and so can be said for a larger scaled business. Be prepared for the unforeseen circumstances that will arise. No matter what brilliant plans you have laid out, market demands will change, competitors will arise, technology will continue on its fast pace, and if you can’t adjust quickly and strategically in real time, your business might not survive. There will in fact be twists and turns, and you can’t be caught standing still. As you scale, your business will get more experimental, and not all ideas/products will succeed, and you need to be able to recalibrate and maintain momentum when this happens.

6.⁠ ⁠Deliberate marketing efforts

Your business isn’t always going to be spontaneously discovered, you have to be intentional about taking up space in the market. Your marketing campaigns must be consistent, data driven, and measurable. In your marketing campaigns, your customer value proposition has to clear, your brand messaging has to resonate and you have to strategically choose what platforms your promotions are positioned on. At this stage, your marketing campaigns are going to cost more, and if not properly planned for, will lead to wasted resources. Define your target audience , align your messaging, and have a clear call to action. Finally, track what worked and what didn’t, so as to inform your future marketing decisions.

7.⁠ ⁠Do not scale too quickly

Do not scale just for the sake of scaling or just to be like every one else. While fast growth looks impressive, you have to be careful to not scale too quickly or else you will fail to keep up with growth. The downside of scaling too quickly is quality being dropped, losing your capital, being stuck with products no one wants, burnout, and even total shutdown. There are necessary questions you must ask yourself before scaling your business; Do I have adequate systems set in place to support scaling? Do I have a solid strategy for scaling up? Is there a market readiness for my product/service? Can my business handle a larger scale demand? My advise? Grow at the pace your business is built to handle.

8. Set up systems for business sustainability

There is a popular quote by the author of Atomic Habits, James Clear, that says, “You do not rise to the level of your goals, you fall to the level of your systems.” Systems ensure that every part of your business runs smoothly no matter how many clients, employees or orders you are handling. There are standard operating measures that every business must have to ensure that nothing slips through the crack. Having systems in place lets you delegate, manages your time and reduces errors. It is empowering your business to be able to function even in your absence. It allows you to focus on strategic growth instead of always dealing with mundane tasks. An example of this is having automated email flows for your customers or using CRM systems to track customer relations. . Think about how much man power that saves you. You should set up systems for every area of your business.

Final Thoughts

My first idea for this article was to highlight popular brands that failed to successfully scale their businesses, as a sort of cautionary tale. But I decided, why scare when I can teach. While business scaling isn’t a walk in the park, it absolutely can be done. Know your why, understand what success looks like to you, strategise carefully, build systems, and equip yourself with the right knowledge and people. You absolutely need the right people around you, as you can’t be the expert in all areas of your business. Finally, be sure that your business is ready for this huge step before you leap. Totally rooting for you!

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