Every entrepreneur on the planet is likely to have business growth as their number one desire for their new company. However, the simple truth is that many businesses aren’t ready for scaling up and escalating production, while many others go about it the wrong way.
Unfortunately, scalability is an easy thing to wish for, but in practice, it can be incredibly challenging. Here are a few things you need to watch out for before making your decision to ramp up your operations and try to grow your – so-far – successful business. Read on to find out more!
First of all, while you might be happy with your employees at the moment, it’s important to remember that working in a small company is a very different experience to working in a large company or one that is undergoing significant change. And this goes for you, too. For example, if you seek out investment from a venture capitalist, they will need you to prove you have the chops – and the experience – of running a large organization. And if you can’t do it, you can expect to be replaced pretty swiftly. So, think carefully about your skills and experience, as well as those of your current employees. It may be that you have to ruffle a few feathers by hiring people who have the nous to handle the big changes that await when undergoing business growth.
Your bottom line
A lot of entrepreneurs focus on making more sales when growing their business. However, it’s not just a case of scaling up and outwards – you also have to trim some fat. Ultimately, your ability to make a profit will depend on it, as there will be departments, equipment, tools and services that are no longer relevant.
Is the technology you use capable of growing with you? Given that business growth involves a lot of change, you need to be ready. As Unicom point out, it’s vital that your technology is adaptable enough to react to major changes, including an increase in customers and ability to deal with demand. A lot of businesses fail when they start to scale, simply because they cannot handle the impact and pressures it can cause on their IT systems.
Timing is a difficult issue to overcome. But by following some of the simple rules laid out above, you will reduce the chances of scaling becoming a failure. As ever in business, good planning is critical, and if you want to avoid a multitude of problems for you, your employees, and your customers, it’s essential to do the research before deciding the time is right to make your move!
Finally, are you guilty of thinking your product is more in demand than it actually is? If so, you are in excellent company. Ramping up sales and marketing too early is a common mistake, and can often leave companies high and dry, with a huge amount of inventory and output, but not enough customers to meet the supply. It’s important that you focus on creating a strong buyers market before trying to convert that interest into sales.