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Making your business bigger is easier. Scaling on the other hand is a bit more difficult.
Scaling a business means creating more revenues exponentially. It is the process of increasing revenues without substantially increasing resources. It goes beyond getting more customers and hiring more staff. It is a carefully planned approach to keep your business in a state of continual improvement.
Thinking about scaling your business? Well, you are certainly not alone. Scaling a business is a sign of growth and expansion, and this is something most business owners wants.
However, there are a lot myths out there about scaling your business. We will talk about 4 of them and debunk in this article.
This is not entirely true. Having more customers does not necessarily equate to an increase in cash flow. I mean, it can be tempting to want to increase your customer base, especially when there is a cash flow problem. However, according to experts, when experiencing a cash flow problem, your customer base is not the first place to look, instead, try to find out how sustainable your business is. Examine your margins properly.
According to Vic William, sudden, rapid growth could exacerbate an existing cash flow problem. There are inherent risks in every business growth including additional costs. As these costs increase, your cash flow might get even tighter. Expanding your customer base is a good solution, but ensure that you have a functional plan first.
Having a proactive team is very helpful. A supportive team will lift a huge part of the burden of scaling off you. While this enhances scaling, it is not enough. Beyond having the right people to work with, you should have a clear goal. What is the drive? Why do you want to scale your business? Understanding this goal, and ensuring that everyone on your team understands it as well will give you the best results.
It is important to have a great product. If you get everything right, and the product is not good enough, you might lose it all in no time.
However, great products are not enough. There is a place for effective product strategy and marketing. An effective marketing strategy builds a clear roadmap for the entire business. With this strategy, you can court the right clients for your business, allocate the right resources, and promote your business with a good reputation.
With all these in place, scaling and sustaining your business becomes easy.
Stories like; “This business went from 15 to 450 employees in 2 years” are interesting, but this is not always an indication of success. If you are thinking long-term when it comes to your business, then there is no rush. Effective scaling is patiently and strategically built with time.
As you think about scaling, also think about maintaining the business you have just scaled. There are several stories about businesses that went down the drain after a huge scale. Ensure that you have a solid foundation first, and when you eventually scale, you will continue to scale.
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Making your business bigger is easier. Scaling on the other hand is a bit more difficult.
Scaling a business means creating more revenues exponentially. It is the process of increasing revenues without substantially increasing resources. It goes beyond getting more customers and hiring more staff. It is a carefully planned approach to keep your business in a state of continual improvement.
Thinking about scaling your business? Well, you are certainly not alone. Scaling a business is a sign of growth and expansion, and this is something most business owners wants.
However, there are a lot myths out there about scaling your business. We will talk about 4 of them and debunk in this article.
This is not entirely true. Having more customers does not necessarily equate to an increase in cash flow. I mean, it can be tempting to want to increase your customer base, especially when there is a cash flow problem. However, according to experts, when experiencing a cash flow problem, your customer base is not the first place to look, instead, try to find out how sustainable your business is. Examine your margins properly.
According to Vic William, sudden, rapid growth could exacerbate an existing cash flow problem. There are inherent risks in every business growth including additional costs. As these costs increase, your cash flow might get even tighter. Expanding your customer base is a good solution, but ensure that you have a functional plan first.
Having a proactive team is very helpful. A supportive team will lift a huge part of the burden of scaling off you. While this enhances scaling, it is not enough. Beyond having the right people to work with, you should have a clear goal. What is the drive? Why do you want to scale your business? Understanding this goal, and ensuring that everyone on your team understands it as well will give you the best results.
It is important to have a great product. If you get everything right, and the product is not good enough, you might lose it all in no time.
However, great products are not enough. There is a place for effective product strategy and marketing. An effective marketing strategy builds a clear roadmap for the entire business. With this strategy, you can court the right clients for your business, allocate the right resources, and promote your business with a good reputation.
With all these in place, scaling and sustaining your business becomes easy.
Stories like; “This business went from 15 to 450 employees in 2 years” are interesting, but this is not always an indication of success. If you are thinking long-term when it comes to your business, then there is no rush. Effective scaling is patiently and strategically built with time.
As you think about scaling, also think about maintaining the business you have just scaled. There are several stories about businesses that went down the drain after a huge scale. Ensure that you have a solid foundation first, and when you eventually scale, you will continue to scale.
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