By Kemfon Decade Daniel
The term “scaling” is frequently used in business but it can have different meanings depending on the context it is being used. Many people will pay lip service to the term scaling up your business” but to effectively scale up your business you must be achieving exponential growth while keeping your costs fairly low.
When a business is able to scale their operations, this means that they are able to handle a growing amount of work or sales in a capable, cost-effective manner.
Truth be told, scaling a business requires a whole new level of skills and systems that many entrepreneurs cannot fully expect. This is why some business advisors caution against scaling too quickly. According to Startup Genome, over 90 percent of startups fail due to self-destruction, not competition.
As you begin scaling your business, you may find yourself having increasing expenses, customer support issues, and miscommunication between staff members. In short, a bad process will only be amplified once you begin trying to scale.
Before you scale your business, it is important to evaluate and plan, take a hard look inside your business to see and ensure that you are ready for growth. You need to be able to identify the problems, progress, and delays in your business.
The recent pandemic has disrupted the world’s economy and this has in great ways affected most businesses and has landed the world’s economy in serious crisis.
Economic crisis is a period of economic slow down characterized by declining productivity and devaluing of financial institutions often due to reckless and unsustainable money lending, spending and unforseen occurrences.
The economic state of a country will definitely affect businesses in that country and most businesses may face serious in house financial crisis. It is important to note that at this point, unnecessary agitations and complaining will not help. Do not adopt a negative attitude; instead understand the situation and act accordingly.
There are a few tips to help you successfully scale your business during an economic crisis without crashing.
5 Ways to effectively scale up your business
The best way to scale your operations is to identify the aspects of your business that can be duplicated in a quick and cost-effective manner.
Here are five effective, actionable steps businesses can take toward successfully scaling up:
1.Entrepreneurs must have the desire to scale
If scaling your business is a priority, then you must develop a plan and action steps for how this will be achieved. Most business owners want their businesses to grow but many do not want it growing past a certain point.
According to a report by Barclays, many entrepreneurs lack the fortitude and ambition to scale when they are in the startup phase of their business. It is very important to be intentional about your plan to scale up your business.
2. Identify your competitive edge
This is what places your business above your competition. In order to scale your business, you need to clearly understand what sets you apart in the eyes of your customers and what advantage you have over your competition. You also need to understand the core strengths of your business so you can invest in focused growth.
3. Focus on the right things
It is essential to focus on the key activities that will move your business forward in a strategic way and directing all efforts towards growing.
Entrepreneurs that are not able to scale their operations are usually focusing on the wrong things in their business. Yes, there are daily tasks within your business that must be completed but it is necessary to focus on the most important of them all.
Focus on where you want to be not where you are.
4. Find ways to automate your processes
If you take a hands-on approach to your business, it may be very hard for you think about scaling operations as part of scaling your business. This is because, in order to scale your business, you have to find ways to automate your processes. In business, flexibility and growth do not necessarily go hand-in-hand. Look at investing in IT support systems and ways you can delegate responsibility for certain necessary tasks.
5. Build your network
Most entrepreneurs understand that developing your network is key to succeeding in business. Yes, you also have to continue to develop your skills and clearly understand the value and expertise that you offer your customers. But building the right connections is key to effectively scaling up your business and long-term growth.