If you want your business to succeed, you’re gonna need a plan on how to scale your business. By focusing on scaling rather than merely ‘growing’ your business’ finances, you can generate greater turnover without increasing costs at the same pace, (Big ups for not increasing costs).
What The Fund Is ‘Scaling’?
Scaling, in business terms, means ramping up the operations of the business. But, without a pre-determined and well thought out plan, this attempt to scale or expand can backfire (Big time, buddy.).
There are a few ways to go BIG with your business, which we will talk about in this blog post, but first you gotta determine if your business has scalability.
Does Your Business Have Scalability?
Scalability of a business refers to the “capability to perform under an expanded scope or increased workload.” For a business to go BIG, it must be able to maintain a stagnant performance level that is acceptable to the owner when tested by increased production.
One of the biggest advantages of SMEs is that they have low operating costs and little overhead compared to bigger and larger businesses that are slowed and weighed down by many factors, such as inventory and warehousing. One of the more appealing aspects of living in today’s age is the advances in technology, which, in most cases, can help scale operations while maintaining overheads or even maintaining a bird’s eye view on your business.
When preparing to go BIG with your business, you should have the following goals and achievement milestones in mind:
- An established array of products and services
- High rates of customer retention
- Multiple income streams
- Revenue that can be predicted and forecasted.
Each of the above points are known targets of a sustainable and scalable business model. If the above conditions are met, chances are your business model is scaling efficiently and properly.
Give your business the time it needs to grow and develop to the point where scaling is not an option but a way forward (You didn’t choose the Biz life, the Biz life chose YOU!)
When the time is right, scale up your SME by following these 4 steps:
- Passing the Hurdle of Being Cash Constraint
- Focus on Core Offerings
- Understanding and Monetising What Sets You Apart
- Put a Strategy in Motion
1. Overcome Cash Constraints
You’ll need the right funding to scale up and ramp up your SME. There are many ways in which a business can secure funding, including some of the more standard options:
There are also some alternative options that may help you overcome cash flow constraints more creatively. In today’s times, an increasing number of businesses are relying on alternative funding mechanisms to finance their scaling plan, including:
- Joint ventures with established players
- Invoice factoring
2. Focus on Core Offerings
To operate at scale, business owners must focus on mastering the business’s core revenue-generating aspects and where you offer the most value to your customers because your customers are your revenue. In every business, there are many areas that generate more leads and greater revenue than others. Those areas must be prioritized and pushed up because they are the ones that stimulate growth.
Whichever area of the business generates the most leads, that is the area that needs to be focused on because leads convert to revenue. If these key operations are not too clear to you as you are reading this, speaking with someone from the outside may help and may offer a fresh perspective and key insights as when you operate a business, you tend to be “too close to the paper” as they say. This means that you are too involved in the business to look at it objectively.
Focusing on the wrong areas of the business may result in postponed growth or a waste of valuable resources (i.e not a vibe.)
3. Capitalize on Your Differential
For your business to succeed, you, as the business owner, must have a competitive edge or differential over your competitors that are out there in the market. This is more than your product or service offerings—think how you provide your offerings, rather than what those offerings are. Everything from A to Z must be considered.
With a critical and an objective eye, assess and understand what exactly your business brings to the table that your competitors don’t. While it is important to continually build on strategic weaknesses, it’s equally or even more important for scaling/growing businesses to identify, develop and effectively market their strengths.
4. Put a Strategy in Motion
If you want to scale or grow your business, you need to be able to draw up a BIG picture strategy that envisions where you want the business to be in a certain period, target acquisition, optimal revenue and what share of the market you want. All of that will paint a clear picture as to where you need to get and how you will get there (eyes on the prize, baby!). This will, most importantly, highlight the type of funding that you will require, and when you find that sweet spot of let’s say R100,000, Fundrr will be able to assist you in less than 24 hours, (bc we’re epic).
This strategy/game plan should include your finish line or endgame scenario. Whether you want to sell the business, go public or make the company your personal cash cow *moo*. You need to have this vision clear for you and your partners. Even if you have no partners, it is extremely important to understand what you are working towards.
Scaling Your Way to Success
Remember, the crucial elements required to bring your business to scale are:
- Securing the right funding through Fundrr’s easy to use funding portal
- Bringing in the right team
- Playing to your company’s strengths
Follow these simple steps to go BIG with a business that has all the right tools of sustainable growth. xo