In business, quarterly analyses are necessary. They help provide visibility on how the business is doing and where it is headed. When the organization is primed for success, the only way is up. Fortune 500 companies started small and scaled up to where they are now. However, it’s necessary to understand that growing your business is different from scaling. In this blog post, we'll guide you through 5 essential tips on how to scale your business.
Growing the Business vs. Scaling the Business
Many business owners are unaware that growth is different from scaling. While both of these concepts point companies in the right direction as both can increase the bottom line, fundamentally, these are two different concepts.
Growth is an increase in capacity and operations along with an increase in revenue. However, this increase is coupled with a concurrent rise in costs to make the business earn more.
On the other hand, scaling means increasing revenue while keeping costs down, and it all boils down to how the business can prioritize efficiency.
Why scale your business this year? According to the 2021 Bank of America’s Small Business Owner Report, roughly 60% of small business owners believe their revenue will grow. Similarly, more than half (56%) expressed confidence about economic growth, pushing 21% of respondents to consider hiring additional people in the next 12 months.
5 Essential Tips on How to Scale Your Business
Here are the 5 essential tips on how to scale your business this year:
1. Follow a process
Determine what steps and strategies the company should follow. Creating a process map can help business owners and employees visualize and understand the necessary steps to ensure continuous improvement. This can take time, so allow at least six months.
Simplicity is an important feature of the process. Astute business owners understand the importance of simplifying things to make them more digestible for all stakeholders. Complex processes can siphon resources because they require more alignment meetings and communication, and this can ultimately slow down the scaling process.
Where possible, try to create standard operating procedures (SOPs) that contain detailed instructions of the processes within the company. Having a unified approach to operations can help increase process efficiency, mitigate errors, and reduce potential miscommunications.
2. Focus on customer’s needs
As company operations expand, business owners should never lose sight of why they are successful—their customers. Improvements must be made to address customers’ needs. For businesses that rely heavily on visitors, key improvements in visitor registration can be critical in improving customer relations. Along with advances in customer acquisition, owners must continue delighting loyal customers.
Businesses that provide only the best products and services can reap significant benefits, including word-of-mouth marketing. However, it is also critical to anticipate their needs, the gap in the market, and how the company can take an active role in closing that gap and reaping the benefits. Improving the visitor experience can make customers feel that they are the focus, which increases their engagement and commitment to the company.
3. Never leave out employees
As the company increases its focus on customers, employees should never feel left out. The employees are a business’s first customers. They are your brand ambassadors. Keep them engaged at all times by providing them with the appropriate tools and resources that allow them to become more effective and successful in what they do. For instance, a receptionist app can free front desk employees to work on more important tasks.
Engaged employees are more productive and committed to contributing to the company’s success. A survey conducted by HubSpot found that 69% of employees are willing to work harder if their efforts are appreciated.
Give them feedback wherever possible, and provide growth opportunities, both personally and professionally. Investing in your employees brings good results. One, it helps attract and retain top talent. Two, working with individuals who share the same vision can help scale the business.
4. Maximize local resources
One key thing that can help a business thrive is to maximize local resources. Consider partnering with small local businesses. Not only will it help the company keep the costs down, but it can also open potential partnerships that make scaling more achievable.
5. Consider working ON the business vs. working IN the business
Business owners should understand that scaling the business means leveraging the right people and technology. This means hiring talented people and delegating important matters to those who are most knowledgeable and best suited to address them. This frees owners to work ON the business, handling more high-level tasks requiring executive presence. When business leaders see the business as opposed to merely looking at it, organizations can better anticipate any potential adjustments and changes to help them pivot and adapt.
How can businesses make this possible? By reviewing the process maps they created.
The process maps should give organizations a high-level understanding of the workflows and necessary performance management to help keep the operations optimal. Measure success through key performance indicators (KPIs) and scorecards to manage performance from the ground up.
Scaling is not always achieved in a linear way, and it doesn’t happen overnight. Keep it steady and strategic. Start with a process, focus on your customers, reward your employees, maximize resources, and progressively work on your business.
Take a look at the status of your business now and visualize how you want to see it in the future. Do you see yourself scaling this year? If yes, you can start with us.