So, you’ve successfully entered the world of start-ups and found the adrenaline buzz of owning your own business to be addictive. Most entrepreneurs love the thrill of seeing an idea launch, which often leads to them moving on to new ideas in a fairly short timeframe.
However, to successfully remove yourself from a business and continue with the heady path to portfolio status, you need to know how to scale your existing business so it can continue to fund your future adventures in business.
Scaling a business is about more than just growing your sales and employing more people. To successfully scale, your business needs to be based on the right foundations which ensure it is equipped to deal with a continued higher volume of transactions. It will undoubtedly involve further investment and a good amount of time invested in strategizing for future success.
At Streamlion, we work with clients at all stages of building and scaling businesses so we thought it would be useful to capture our top 5 tips on how to scale your business successfully.
Top Tip #1: Start at the beginning
It’s all too easy for excitable entrepreneurs to leap over the initial stages of scaling a business and move straight to the increase in marketing or selling. Before that, it’s essential to ensure your business is equipped to handle this extra throughput. Not doing so could result in disappointed customers which, in turn, could seriously damage your reputation and put paid to any future plans for growth. Premature scaling is cited as one of the leading causes of startup failure.
The beginning is planning. Scaling a business is not the same as growing it. Scaling involves innovating your business model as well as your product or service. You need to invest time in working out potential new markets, back-office automation and funding.
Top Tip #2: The price of growth
Scaling a business effectively is never cheap. In fact, one of the most common reasons that startups fail to scale is down to funding. And funding a scale-up is an entirely different prospect to funding a startup so it’s essential to work with experts who can help with creating a sustained growth plan as well as helping you understand the transformations that need to happen to set the business up for a successful future.
Like scaling, finding funding is down to putting in the right preparation and demonstrating that your business is ready for change and growth.
Top Tip #3: Optimisation is key to transformation
To quote Einstein “If I had one hour to save the world, I would spend 55 minutes defining the problem and only five minutes finding the solution.” Scaling a business needs the same approach; success is all about understanding how things work and how they need improving to cope with a larger volume.
Achieving automation and integration, which are the likely outcomes of optimisation, will likely involve technology. The happy fact is, there’s no shortage of packages, apps and products that can help make things easier. However, finding the right one for your business is critical.
CRMs, automated marketing, accounting and your overall IT network all need to come under the microscope at this stage.
Top Tip #4: A change of pace
Your business goals might be clearer but it’s a well-documented fact that change management needs careful handling.
As well as any team members involved, it’s well worth getting under the skin of your customer experience journey. Plotting out every touchpoint between you and your clients will help to identify any areas that might need attention prior to scaling. We use Customer Journey Maps to help our clients to see any areas of friction which might cause problems when scaled. Additionally, you can identify areas for investment, which could be wrapped up with the other areas that need funding in order to create the very best version of your business.
Top Tip #5: It’s not all about you
Creating a business is a little like having a baby, you bring it into being, nurture and help it to grow and, inevitably, you eventually leave it to stand on its own two feet. This time is now.
For a business to scale, it needs to be able to operate consistently based on the policies and processes you’ve spent so long on assessing and improving. You have options as to whether you outsource some of the regular activities, or whether you hire a team to run things for you. Either way, taking a step back for the first time can be daunting.
The key thing to remember is that you’ve invested time in getting things right, so your business is ready for this, even if you aren’t. It’s also really important to hire the right people – people you know share your values and will continue to inject enthusiasm and innovation into the business.
Finally, as with most things in business, successful scaling is also a mindset. By working with a strong team of advisers and having faith in your own ideas, scalability becomes infinitely easier.