How To Scale Your Small Business?
With the right tools and a bit of luck, many small businesses can grow into billion-dollar enterprises. It is not just large companies that are able to scale successfully. There are some characteristics shared by all scalable companies – how you can emulate them in your company? What is the secret sauce for scaling your business up?
These are some questions you will be trying to answer as we go through this blog post. Let’s get started!
Make sure you’re ready for growth
Before you take on any investors or additional funding, ensure that you and your business are ready. Make sure you have a plan for growth and expansion! Ensure that you speak with your current suppliers and negotiate deals so that they are willing to reduce their standard minimum order quantity.
Evaluate and Plan
Evaluate your business and the areas in which you are operating. Make sure that you have identified all of your strengths, weaknesses, opportunities, and threats before applying for funding or scaling up.
If your company is in need of extra capital but you are unable to provide it yourself, do not sit around waiting for investors to approach you; it may never happen. However, there will be a cost associated with hiring an intermediary such as a broker (typically between 3-10% of the total amount raised). Analyst network firms can also help get direct access to angel investors through their databases. Look out for other resources on how to raise money online.
Look for the best deal
When it comes to maximizing your company’s value, you should always review all of your options. Do not consider only your existing network; make sure that you broaden your horizons and investigate what other financiers may be available. Depending on where you are located, there may even be government grants available. Also, check out other online resources like Fundable or AngelList. You can also get access to capital through crowdfunding platforms like Kickstarter, GoFundMe, Indiegogo, etc. which don’t offer equity in exchange for investment – but they still let people invest (and get rewards!) in exciting new projects! Be proactive and look at opportunities everywhere!
Invest in Technology
You should never scale your business without investing in technology. Technology can help you manage a bigger workforce, improve productivity and efficiency, create new products, etc. There are many different types of software you can utilize to help your business scale beyond the one-man band.
Hire qualified people
As your business grows, you may be tempted to hire any warm body that comes through your door. However, “hiring slow” is very important when it comes to scaling up; investing the time to find the right person for the job is an investment in keeping your company scalable.
As your business continues to expand, there may come a point where you need to make sacrifices and alter your processes. Do not become resistant; if something needs to change, do it willingly. Your willingness will encourage growth among your employees as well!
If you’ve done your homework and taken the necessary steps to prepare for growth, there are many ways that you can scale up your business. By leveraging technology, enhancing your workforce with qualified professionals, being flexible in what needs changing (and when), and being always on the lookout for new opportunities, it is possible to grow into a billion-dollar enterprise without letting anyone hold you back!
Also, I recommend you to visit Bizop. You can find some interesting business articles there.