7 ways to scale your business
You have done a brave and difficult thing by going your own way and becoming an entrepreneur. One of the hardest things to do in business is to build on success. The worry of increasing revenue and keeping enough capital flowing into your coffers is always there. But this is not the thing that most people struggle with. The real challenge is knowing when you have an opportunity to scale up your company based on the market you captured, the sales you have made, and the success you have had in establishing yourself as a trusted brand.
Here are 7 tips to scale up your business:
1. Know the true value of what you are selling
One of the most common mistakes new entrepreneurs make is under-selling their products. The fear of being outpriced by competitors is one that rarely has a basis in fact. You should not be overly worried that people won’t buy your products because they can find them cheaper elsewhere. The point is to make what you’re valuable enough to get people to pay what you charge for it.
Setting the right price means evaluating all that goes into both creating and delivering your product. The costs of your inputs may remain relatively stable. But as you continue operating the speed and efficiency with which you deliver it will increase. This is a reason to increase prices, not lower them.
2. Cut costs when practicable
It is important that you cut cost when practicable rather than when possible. Too many entrepreneurs confuse the two. They look at every activity within the business as a drain on profits and feel a compulsion to slash and burn at regular intervals. Such persons often cut the wrong things and end up setting back the efficiency of service, or, worse yet, degrading the quality of the product.
The same logic applies to outsourcing and renting. Too many entrepreneurs take these ideas too far. It is not always a bad thing to own amenities, office space, or other things that support your ability to operate. For example, rather than renting a television when you need to be in a city for an extended period of time, you may find that it is cheaper to buy one at a local electronics store. When you leave, all you need do is give the box to charity, so you don’t have to spend money to ship it to wherever you’re going next.
3. Create packages
Customers love package deals. That is because everyone nowadays likes to feel as though they are getting a bargain. One of the best ways to increase loyalty to your brand is to create different packages that include various levels of service. The document that you put together to explain what the customer gets in each of the different packages should be simple and direct, and it should spell out distinctly what is included in each package.
4. Create recurring revenue
If you are struggling to meet payroll and pay other bills each month, you cannot get yourself in a position in which you are able to scale up. One solution to this problem is to create recurring revenue. Explore the possibility of a subscription service.
The Dollar Shave Club is a model for this move. The company provides men’s shaving supplies by subscription. Indeed, this way of doing business is becoming more and more of a trend. So, you may want to think of ways to implement this model in your company.
5. Establish partnerships
As a small business owner, you will need partnerships and alliances if you ever hope to grow into something larger. One of the best ways to establish such relationships is to find other businesses that can market and sell your products for you. This typically involves discerning some way by which both you and your potential partners can benefit from working together.
6. Focus on your core strengths
The last two tips are just reminders of things you probably already know. The first thing to remember is that you must focus on the things your company is good at. You can’t wish into existence capabilities you don’t have, so concentrate your energies on growing from your strengths.
7. Develop your people
The knowledge, skills, and competence of the individuals on your team must be expanded and leveraged. Your people should have what they need to do their jobs. And they should have the space and be given the trust to grow in them.
