When companies grow, they are increasing their revenue equally as fast as they are adding resources to enable that increase. When companies scale, on the other hand, they add revenue at a faster rate than they take on new costs. When establishing a scaling strategy for your business, you should have the following long-term goals in mind:
- An established value ladder of products/services
- Available subscription packages
- High customer retention rates
- Diverse income streams
- Predictable revenue
Standardizing your processes: Scaling requires you to move beyond the start-up phase and standardize workflows so that they’re able to cope with increased market demands. Leveraging technologies and full-suite solutions (i.e. QuickBooks) can help business owners grow their company while saving time and keeping upfront costs low.
Aside from automation, standardizing your business processes is another essential element of scaling. When you bring in new team leaders and middle managers, you must document and distribute a clear set of instructions to the personnel responsible for handling a certain activity. These instructions should be repeated regularly and will ultimately convert an otherwise complex task into a structured regimen. Whenever confusion arises within the team, they can refer to the process checklist rather than you.
Identifying core competencies: To operate at scale, business leaders need to concentrate on mastering the company’s core competencies. For example, in every company, there are daily or weekly tasks that generate more leads and greater revenue than others. These are the tasks that must be prioritized on your business’s schedule, as they are the ones that stimulate growth. Knowing how to scale a business begins with being able to identify where you offer the most value to clients and customers and aggressively ramping up those specific operations. We can offer a fresh perspective and key insights in this regard.
Leveraging equity: To execute your plan, you need funding to leverage and complement your equity capital. We have extensive experience in securing funding for small businesses, some that are standard, some that are new to the market – traditional term loans, short-term loans, business lines of credit, SBA loans, invoice financing, recurring revenue loans (based on MRR or ARR), etc.