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Scaling Your Small Business

Scaling Your Small Business

10 Factors to Consider Before Scaling Your Small Business

If you’re been running a small business for a while and experienced considerable growth, then congratulations, you may be ready for the next stage. Scaling your company means increasing your resources, expanding your network, and investing in more inventory to make a bigger name for yourself in the field. Essentially, your business is growing and you want it to continue moving in the right direction. There are risks involved, however, and you need to make sure you’re ready to cope with the rise in demand. It’s also vital to keep up with current trends in the market and pivot towards these if necessary. Here are ten factors to consider before scaling your small business. 

Investing in commercial real estate

Perhaps until now, you’ve been operating remotely or out of your home office. Or, maybe have your own premises but it’s not big enough. Scaling your business may mean you need to invest in commercial real estate such as a brick and mortar store, second location, new offices, or warehouse space. If you are planning on buying property for your business you can figure out your mortgage calculation online, as this will be one of the bigger new expenses.

Office rental options

If you’re on a budget there are also cost-effective workspace options. These are more for smaller companies who can operate mostly remotely. If you need to hold meetings or work on a particular project in person, you can actually rent office space on a temporary basis. It depends on the nature of your business, and how much space you need.

Increase in inventory

Once demand increases you will need more inventory if your business sells physical products. This is a necessary investment because, in order to provide the best service, you can’t make potential customers wait because you’re out of stock. Managing large amounts of inventory is one of the biggest challenges businesses such as eCommerce face when scaling up. Fortunately, the latest inventory management software can help you. You also might want to consider outsourcing fulfillment to a third-party.

Demand for business knowledge

As your business begins to grow you will need a deeper knowledge of the current market, especially in your sector. To avoid making risky uninformed decisions, and to protect your company finances you should seek professional advice. Hire the support of a business consultant who has industry-specific expertise. They will be able to advise you on the risks involved in scaling your business and the best solutions for you according to your budget. Go through your plans with your consultant and they will give you professional insights and suggest areas where you can cut costs. They will also have the required knowledge to help your business continue to succeed.

Expanding your staff

If you’re planning on growing your business you will need to increase your workforce. This means hiring new permanent members of staff or outsourcing. There are several benefits of outsourcing for small businesses. You’ll be able to save on overheads, salaries, and staff benefits and you can work with trained talent. This will save you time as well as money. A disadvantage of outsourcing, however, is that the people you hire will be less connected to your business. Your business consultant will be able to advise you on the best staffing plan for you.

Expanding your business network

As well as building your company from the inside you’ll also need to improve your networking skills. You’ll rely on support from other businesses more than ever once you start scaling up. Get in touch with businesses through B2B marketing strategies such as social media, email marketing, and virtual events. You can even collaborate with another company to form a marketing partnership and both businesses will have access to a wider audience.

Technology and equipment updates

The latest technology and equipment will be necessary to support the rise in demand. You will need the right software and tools to analyze big data and improve your strategies. Technology and equipment updates are a good investment. They’ll boost efficiency, security, and your overall credibility as a company. Digitalization is unavoidable for most businesses and this transformation will help you grow. It’s also a good time to update your company website. Do everything you can to optimize the user experience and boost your online presence. It might be worth enlisting the help of a digital marketing or web design agency. 

Current trends in the market

Before scaling your business it’s essential to research current trends in the market. This is particularly relevant when considering consumer behaviors in your field. Find out the expectations of today’s customers and how you can meet them. This may mean updating your website to include the latest self-service tools and automation. Are you offering services such as next-day delivery in order to keep up with the competition? In order to get your business to the next level, research your competitors in the field and find out what’s working for them and how you can get the edge.

Fostering company culture

You should always focus on company culture, especially in the early days. This will help to facilitate the scaling of your business. It will also create motivated and engaged workers. Invest in your team, put a strong focus on communication, and foster a productive company culture. Understand both the personal and professional needs of your employees. Perform a skills gap analysis if you think additional training will be necessary before you scale your business. Ensure your employees are up to the challenge as well.

Funding options

Before scaling your business it’s crucial to plan a realistic budget you can stick to. There are plenty of funding options for small businesses, and you can also speak to a financial or business advisor about this. Choosing to take your company to the next level is a big decision that shouldn’t be taken lightly. Having said that, it could bring fantastic opportunities in the future. As long as you’re proactive, you could be headed for success.

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