Depending on whom you ask, scaling is either a mere buzzword or a game-changer.
You’re probably wondering already “what is scaling in business anyway and why should I care?”. Isn’t getting operations off the ground a lot to deal with already?
Well, if you fail to plan your scaling journey, you essentially plan to fail.
Scaling is the art of fast-tracking your growth and avoiding common pitfalls. It lets you handle and sustain growth without jeopardizing your long-term prospects.
So, it would be smart to get on top of scaling, having a clear trajectory and destination in mind. We’ll show you how to do this following a paced, step-by-step approach.
Grasp the Big Picture
The first order of business is working out a scaling strategy.
We know it can be tricky, but you have to realize what your endgame is. In other words, it’s necessary to set your ultimate business goals. Do you want to build a profitable organization and sell it? Or, do you aspire to lead the company for good and support your lifestyle?
Whatever the plan is, put it in black and white and back with data. Come up with a sales strategy and ensure you have a product-market fit.
Devise how you’ll handle an increase in work, sales, and output. You have to do it in a cost-effective fashion to avoid financial and other missteps.
Namely, you want your growth to be three things: repeatable, scalable, and profitable.
Thus, apart from the start and finish line, you have to think about ways of getting from one growth stage to the other. We would recommend evaluating capital and other requirements for each stage. Then, you can designate the timeline complete with milestones.
Finally, assess risks that threaten to plague your growth. Aim to reduce them with operational risk management. It represents a holistic concept that includes risk decision-making, assessments, and controls.
Sort out Funding
The next step is figuring out tactics and strategies to fuel your growth.
Many business owners go to great lengths to attract investment. Some go for venture capital while others decide to execute mergers with another company. These are just a few funding strategies to ponder.
In general, they hold the power to supercharge your growth, but there’s a flip side to them. You sometimes give up equity and surrender some of the control of the company.
That’s a high price to pay for, so see whether you’re fine with it or not. If the answer is no, consider alternative options.
Bank loans are a way to protect equity and get funds in one stroke. Besides, Federal Reserves have slashed the interest rate to zero as an emergency measure. This is to say the cost of borrowing is as low as it gets.
Bootstrapping is another solution worth entertaining. It revolves around quickly testing and validating your core ideas. We’re talking about crowd funding and platforms in the league of Kickstarter.
They are a place to be if you want to make the most of bootstrapping. Provided you play your cards well, you can overcome initial hurdles without running into financial risk.
Get Help When Needed
Sooner or later, we all come face to face with a challenge that exceeds our capabilities.
Even if you like running a one-man-show, you can’t always expect to solve everything alone. Enlisting the help of strategic advisors makes a lot of sense in those situations.
They can flatten the learning curve and make up for gaps in your own knowledge, experience, and expertise. For instance, you might want to bring in a specialist for logistics, growth hacking, product development, etc.
A joint venture can be a smart move too, as it’s associated with several benefits.
Essentially, you can leapfrog your way to a wider audience and pool of customers. This plan works best when you strike a partnership with a company that already serves your ideal customers.
Elevating Revenue and Cash Flow
Even with ample funding, overcoming cash limitations remains a top priority.
The good news is you can push the boundaries in many creative ways. They hinge on efforts to open new revenue streams.
For instance, implement a monthly subscription plan to turn one-time buyers into repeat customers. This is a great long-term scaling trick that worked wonders for so many businesses.
You not only boost your profitability but also improve the predictability of cash flow.
In case you just need to generate some quick cash, try financing your invoices. You basically sell them (borrow money) today instead of waiting for due payments to come in. Most entrepreneurs do this when they want to solve pressing issues such as paying suppliers.
The key thing is to analyze the present financial trends and anticipate future problems. This foresight enhances your ability to apply the right solutions at the right moment.
Get Serious With Digital Marketing
Digital marketing is a powerful catalyst for growth.
There’s no shortage of excellent ways to align it with your scaling efforts and take off.
For example, start looking beyond brand staples such as logos and taglines. Make an effort to expand and reinforce your online presence.
Create a blog and share quality and relevant content. You can carve out a niche, build an organic audience, and assert your authority. You certainly won’t come across as someone who’s chasing nothing more than profits.
Moving on, get into white-hat SEO to take visibility to the next level. This strategy contains a multitude of tactics for optimizing your digital assets. They all prompt Google algorithms to work in your favor.
This is bound to send a lot of leads and sales your way.
What Is Scaling in Business? Now You Know!
We’ve given you an answer to the critical question, “What is scaling in business?”.
Your job is to take a bird’s eye view of your business journey and flesh out a plan for action.
Get your priorities straight and define the milestones. Identify suitable tactics, tools, and best practices that forward set goals. Don’t venture anywhere without a properly-budgeted roadmap for growth in front of you.
Strive to overcome growing pains with cash injections and creative financing options. Don’t hesitate to seek external help and strategic advice. Step up your marketing strategy today.
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