A successful business scaling strategy is essential to sustainable revenue. However, before developing your scaling plan, it is important to understand the subtle difference between scaling and growth. Business growth is where revenue generation and overhead spending remain in equilibrium. In contrast, scaling is when revenue or market share increases with incremental investment in operations. As such, scaling is about developing a business model and organizational structure that can create consistent revenue gains without excessive spending on overheads. In this article, we run through five key ways to develop a workable, profitable business scaling strategy.
1. Create systems and delegate tasks
The real test of scalability is whether or not your business can function without your direct involvement. Lots of entrepreneurs struggle with letting go and allowing someone else to manage certain aspects of their business. However, trusting your staff is essential to sustainable growth; after all, how can a business expand without a growing team? That said, you don’t need to leave it all down to blind faith. Make sure you create robust systems so your employees have direction, whether you’re in the office or not. With these structures, you can ensure staff deliver quality service even in your absence.
2. Refine your hiring policy
As you grow your company and aim for more lucrative contracts, you have to make sure you surround yourself with the best possible team. Your employees will be pivotal to growing a successful business; if you have staff that are underperforming they have the potential to compromise service, damage referrals, and stifle profit. Therefore, it is essential that you review your hiring process. To make sure you’re taking on the best possible talent, you need to vet applications extensively. After hires, consider implementing a probation period so you can evaluate performance. However, it is also important to develop a comprehensive onboarding process to get new employees up-to-speed as fast as possible.
3. Get legal counsel
Many business owners put off hiring a lawyer to keep their overheads down. However, when you’re developing your business scaling strategy, this is a rash move. Contravening basic legislation or contract law can have serious consequences, so it is important to seek appropriate legal counsel. These risks of expanding a business are great when entering new markets and more complex agreements, so get a lawyer on retainer as soon as you plan to expand your business. Make sure they review all your legal obligations and contracts to ensure you’re fully compliant and protected. Furthermore, it is also important to ensure your insurance fully covers your scaling aspirations, as nobody wants to end up embroiled in a professional liability lawsuit.
4. Leverage digital marketing
Today, the first place consumers search for a product or service is the Internet. Therefore, it is the most important place to market your business. Moreover, it is also the most cost-effective – the vast majority of social and e-marketing solutions are low-cost or completely free. SEO is crucial to positioning your brand and making sure business is consistent. Content market is also essential to boosting consumer trust and brand credibility. Remember, people are far more likely to share content than products. Therefore, your message will travel faster under the guise of helpful information and tips than an unadulterated sales message.
5. Deliver the best customer service
Customer service is the most important way to distinguish your brand from the competition. As you deliver your business scaling strategy and grow your client base, there is risk customer experience can slip. However, if you provide quality service, you’ll nurture consumer confidence, increase conversions, and gain referrals. To reinforce the points made above, your team are key to delivering on this imperative. Empower staff to make quick and effective customer service decisions, so you can provide the fast, seamless service consumers have come to expect.
Deliver an effective business scaling strategy
We all know that setting up a business comes with its obstacles – but as these points illustrate, developing a business scaling strategy is a whole new challenge. To scale a business, you need to ensure you are providing a product people want, supported by the right technology, and facilitate by a sustainable strategy. Although there isn’t only one barometer of business success, revenue is a key metric. Successful businesses will align their sales strategy with marketing and source the best talent to drive profit. By bearing in mind the five stages discussed here, you can ensure you develop a business scaling strategy that works long-term.