If you own or lead one of America’s 30 billion small businesses, you know how tough it can be to grow your brand. Worse, one survey found that an unsustainable growth rate was listed as the main cause of almost 20% of small business closures in 2021.
The prospect of growth is exciting, but figuring out how to scale a business in a smart, sustainable way can be harder than you’d expect. How do you avoid burnout and overworked teams? How do you keep up with growing sales and higher demand as your company expands?
Fortunately, a few simple steps can help you plan your scaling strategy. If you’re ready to see your brand thrive, here are the tips worth knowing.
Create a Business Plan
Before you start scaling a business, make sure you’re ready for rapid growth. To do this, sit down and create a viable business plan if you haven’t done so already.
This business plan should include research into your target audience, sales strategies, and conversion tactics. You should also include your monthly sales projections and expected expenses. Your cash flow will play a huge role in your ability to scale!
From there, consider the strategies you’ll use to scale your business. Above all, this should include details about the structure. Though your brand may be small now, you’ll need to increase the decision-makers and rethink your current structure in ways that encourage growth, and it’s smart to do that on the front end.
If you struggle to analyze and plan for business growth, contacting an expert can help. Companies like Elite Entrepreneurs specialize in helping leaders scale their brands successfully.
Find the Money
If you’re like most growing companies, you may not have the money to expand as you please. Hiring staff, expanding your offices, and investing in products and technology take cash. Do you have enough to invest in your business?
If you know you won’t be able to expand through bootstrapping, it’s time to consider how you’ll fund your growth. Start by using your business plan to determine how much funding you’ll need to scale. From there, you have several options.
One option is to talk to angel investors or venture capitalists who are willing to fund your growth. Small business loans, SBA-backed loans, or loans from friends and family are also great options. Depending on your business, crowdfunding can be a popular choice, provided you have incentives ready and possess the time to market yourself online.
As a last resort, options like personal loans or credit card expenditures can work for smaller purchases.
Hire the Right Team
Your people are the backbone of your business. Without the right talent, it’s hard to grow your business in a sustainable way. That’s why it’s crucial not only to hire as you grow but also to put strategies in place that ensure you’re hiring the right people.
Pay attention to the systems you use to recruit and hire. Are they serving your brand? Are you offering the right benefits and pay to attract the talent you need?
Note that this step is important whether you’re hiring employees, contracting out work, seeking top managers, or creating new franchises. You’ll also want to consider the vendors you partner with.
Focus on Shared Values
For your internal team, it’s hard to overstate the importance of your company culture. Shared values help define who you are as a brand, making diverse teams feel cohesive and cooperative.
Before you start growing a business, take some time to iron out your company’s vision, goals, and expectations. These details may seem minor, but they affect how your staff will make important decisions, solve problems, and interact with each other. They can also keep you and your teams on the same page during periods of explosive growth.
Streamline Your Sales
When you’re hoping to grow your brand, the assumption is that you’ll make more sales to earn part of the revenue you need. If you don’t already have processes in place to support this growth, it’s time to strategize!
Start by taking a hard look at your sales funnel.
Do you have the resources and tools for your marketing team to manage leads? Do you have enough sales reps and sufficient systems to close those leads? How are you managing your sales orders and billing?
These processes should be streamlined to perfection before you begin scaling. Break down tasks as needed and figure out how to make them work.
Invest in Technology
One way to help not only your sales team but also your company at large is better technology. Modern tools make it easy to save time and effort while boosting productivity, and they often help you save money in the process.
Automation tools that minimize your team’s workload, for example, can free your staff up for more important tasks. CRM systems help your employees track leads, conversions, and more across teams. Devices like computers, servers, printers, and other tools can also be crucial.
Evaluate the products you might need and factor in the cost as you grow.
Consider Your Speed
When you want to know how to scale a business, your first excited question may be “How fast can I grow?” However, don’t forget that the goal isn’t uncontrolled growth; it’s smart growth.
Businesses that grow too fast may scale by expanding systems and structures that aren’t ready to support that growth. This, in turn, makes it easier for imperfect systems to become ingrained in your workflow.
Most experts suggest that growth at a rate of 10-25% per year is sustainable. Any more than that, and your expansion may be too rapid to successfully manage.
Scale a Business the Right Way
If you’re ready to scale a business, make sure you’re doing it the smart way! Taking time to evaluate your brand and consider your next steps can help you work toward sustainable growth. With the tips above, you’ll find it even easier to scale your business at a fast but comfortable pace.
Ready for more of the business cards insights you need to know? Be sure to take a look at our other helpful guides.