5 Strategies For Scaling A Business in 2020
Scaling a business is both an exciting and challenging prospect for business owners. It is exciting because new horizons for growth open up, and it can be challenging because one wrong move and profits will nosedive.
In fact, it is one of the leading causes of a failed startup. The policy advisory and research firm, Startup Genome, hold premature scaling responsible for 70 percent of all tech business failures.’
What is premature scaling?
There are three main dimensions of a business.
Premature scaling happens when a business devotes uneven resources to any of these dimensions. In order to scale properly, you need to focus equally on each area to help your business grow.
Expanding to new markets before the company or product is ready, or investing in the product when the market is not prepared for it are simple examples of premature scaling.
An influx of too much cash can also be a perfect ingredient for premature scaling. While raising capital is a requirement for sustaining a business, too much capital can result in unnecessary spending and adversely affect a company’s growth.
Fortunately, there is plenty of business wisdom available on the subject that can help you scale your business the right way in 2020. Below, we list down key strategies that leading companies have found useful when it comes to scaling.
1. Solidify your foundation
A key component of successful scaling is to understand the foundation of your business and make efforts to strengthen it. By offering your key product or service from the onset and consistently meeting your customers’ needs, you are in a better position for stable and controlled growth.
Businesses can also make scaling more manageable by ensuring product consistency and uniform user experience. It is crucial to maintain the high standards of delivery your business sets in the initial phase to stays consistent.
Customers, when they get acquainted with a brand, expect it to maintain its standards. Any dip in quality or accessibility does not go down well with them. The goal should be to improve customer loyalty and create a business based on a scalable model.
2. Invest in Technology
Many businesses fail to grow because the proprietors get bogged down in trivial stuff that can be handled more effectively using technology. For instance, why hire separate personnel to manage your social media when you can use technology?
Technology not only reduces the burden of the employees but also makes it easier and inexpensive for startups to scale. There are numerous tools that businesses can invest in to achieve maximum scalability, that too, with less labour and resources. Below are a few of them:
- CRM software: A Customer Relation Management system, or shortly CRM, is an effective approach to manage interaction customers. It uses data to enhance the relationship of a business with its customers.
- Accounting software: Accounting and financing software provide timely data and reports that businesses can use to make better financial decisions.
- Inventory management software: These software help businesses to track their inventories and orders so that they do not lose out on leads and focus their attention on things that matter: sales!
As your business attracts more users, you will need more integrated efforts to deal with the increased amount of information and customers’ data. The above tools will allow you to cope with the information and use it to your advantage as your business grows.
3. Automate your marketing efforts
Marketing automation refers to the use of tools and solutions that allow companies to automate their marketing tasks so that they can improve their efficiency and maximise their revenue.
Whether it is emails, posts, tweets or any other digital media content that you want to schedule, there are tools that help you do it efficiently
Other benefits of automation tools include:
- Reduced staffing costs
- Refined marketing processes
- Effective monitoring of marketing campaigns
- Scheduling posts ahead of time
- Better reporting
While the field of marketing automation is relatively new, it has rapidly become a necessity for businesses that want to expand their customer base and do effective marketing.
4. Find investors
To scale your business, you will need the money more than anything else. Every other thing comes second. Whether you want to add more space, buy new equipment, hire more staff, or invest in research, you will not be able to do it without a significant capital.
You should share your business idea or expansion plan with potential investors who might be interested to invest in your company. Or perhaps you can identify bank funds and take out a loan to accelerate the growth of your business.
Whatever source you apply for, make sure you are clear about how much money you will need to scale your business.
5. Outsource time-consuming tasks
Technology offers enormous leverage, but even then, the need for human resources remains. You and your team will be able to perform most of the tasks, but at the end of the day, you will still need help in some areas of business. Here, you should consider outsourcing.
No one is a master of all trades. It’s axiomatic. One of the advantages of outsourcing is that we can get the work done by the experts. They will do the same job more efficiently than someone with half knowledge.
For instance, keeping your website and social media channels up to date can be tedious and confusing. Here, you can rope in professionals who understand the latest SEO trends and search algorithms to handle it for you. Once you successfully grow your business, you will be in a position to hire a permanent team for the task.
Regardless of where your business stands today, there are exciting days ahead. We do not claim that your business will flourish overnight by following these strategies. However, with a clear mindset, proper planning, the right team, and necessary tools, there is nothing that can stop you from effectively scaling your company.