Best Practices: Scaling Your Business Successfully
Ah, the glorious dream of every entrepreneur – to build a successful and sustainable business from scratch! But scaling, my friends, ain’t the same as sustainability. Is scaling the right choice for you?
Scaling isn’t just about more moolah, folks. It also means more responsibility, more employees, and probably more work (yikes!). So, if you’re dead set on scaling your business, what essential steps do you need to take?
Let’s dive into the basics of scaling your business, with a sprinkle of humor, of course.
What does scaling your business mean?
“Growing” isn’t the only thing on the menu when it comes to scaling. There’s more to it than just increasing your cash flow.
“Scaling means growing your business operations so you can take on more work and add revenue at a faster rate,” says our wise friend, Shabir. Scaling affects the size, revenue, staff, and locations of your business. It doesn’t matter whether you’re an owner-operator or a $500,000+ revenue business; anyone can scale.
What do you need to consider before deciding to scale?
“But growth and scaling aren’t for everyone, you need a purpose for it – passion, determination and drive,” says Shabir. If you want to embark on the scaling journey, you gotta have a good reason for it – no shortcuts here.
So, why scale? Well, scaling your business comes with extra responsibilities, costs, and time. That’s great and all, but you’ve got to ponder on your true motivation before jumping aboard.
Consider these aspects:
1. Making more money is fantastic, but with scaling comes increased costs: software, overheads, and meeting customer expectations are essential investments.
2. More work! Oh, joy! Either administrative work, training employees, or working in the field – you’ve got to figure out how to handle the extra workload.
3. Hiring more employees or contractors may be necessary with the growing demand. That also means taking up a quality-control role to avoid dips in business performance and customer satisfaction.
4. Focusing on a specific area of business: are you still going to be doing what you love, or taking a new path to accommodate the growth?
“Shabir shares a story of a plumbing solopreneur who grew his business so well he had to hire more plumbers to cope. As the team expanded, he had to manage operations from the office instead of the field. “It got so busy that he didn’t have time for customer-facing stuff and repairs,” says Shabir. Realizing his love for the job slipped away, he cut back, aimed for a smaller business model and ended up enjoying his day-to-day much more, even though it meant making slightly less money.”
- So, whether you want to avoid the headaches of expansion or hire someone who handles tasks you dislike, remember to consider your passion, happiness, and the reasons you started the business in the first place. And do it with a good dose of laughter!
Eureka! Time to scale your business, my friends! But why, you ask? Gather round, and I shall reveal the delightful benefits of growth:
1. Assembling a more extensive team means offering more fabulous services! For instance, our beloved clients adore our lawn care services, but they’d also like some tree care. We can scale by hiring a fine arborist!
2. Imagine the joy of increased demand for your exceptional services! When the local builders crown you the best framing carpenter in town, you’ll need to hire more carpenters to keep up with the escalating popularity!
3. Perhaps your profit aspirations seem unattainable because you’re juggling too many tasks as a solopreneur. Fret not! Delegating administrative tasks to a new hire will free up your time, allowing you to focus on your true passion!
Now the important bit – what magical tools, processes, and systems are needed to revel in the glory of scaling?
Iconic bookkeeping software and business operations software are essentials, my friends! Marvelous programs like QuickBooks or Sage, and apps like Jobber are crucial to fast-track your growth and manage your team efficiently.
But beware the perils of disorganization!
- A haphazard invoicing process could lead to delayed payments, unpaid bills, and a stunting of your business’s growth.
- Similarly, not tracking conversations with clients could leave money on the table best used for your expansion.
- When it’s just you, a humble calendar app or paper might be enough for scheduling.
- But alas! As soon as you have an employee, you’ll need a more sophisticated system to avoid missed appointments, cranky clients, and vanished revenue.
Our expert, Shabir, from KBH Chartered Accountants, has some wise words:
“Once you start filling your day with customers, your evenings get spent on paperwork. Then you might realize there’s software that can handle it all for you.”
But worry not! You don’t need a comprehensive solution right away. Start small, with an app that handles just one aspect of your business operations. As you become accustomed to the marvelous world of software and see the need for more functionality, you can confidently invest in a business operations software that will transform your business!
So let us embark on this fantastical journey of scaling, and watch our businesses flourish!