If you believe in your business idea completely and without reserve, then you aren’t just looking to start building a presence on the market, you want to make sure it’s ready to grow as soon as possible. Through growth lies the path to real profit, but many businesses have a hard time getting there. In fact, the majority of small businesses that fail to make it beyond the second-year mark do so because they fail to scale. So, how do you make sure your business makes it over that hump and grows when it’s ready to?
Know what’s holding you back
What’s currently stopping you from scaling? It might seem like a simple question, but by getting into the nitty-gritty of the answer, you can start making moves that smooth the transition when it comes. A long transitory period is one of the most dangerous things a business can undergo. Profits could pause, the team will feel uncertain, and for some time it will feel like you have little control. Look at what’s holding you back, whether it’s certain costs, a lack of organisation, distractions or something else. Find solutions to those problems before you scale, not as you scale.
Get the funding you need
Are you profiting enough to be able to invest in your scaling efforts? Many business owners will turn to banks and angel investors to build the funding they need but that’s not necessarily essential. By learning about investing and getting information about CFDs, stocks, bonds, and so on, you can start building cash that you earn independently from the business. While there is some risk involved, as there is with every investment, it can help you build wealth that you can later pump back into the business. Making yourself less reliant on outside sources of funding means that you’re likely to be more able to continue sustaining your business in future, too, since you have less to pay back.
Have your plans at the ready
You had a business plan when you first started the business and now you need another business plan. You need to outline exactly what you’re going to do with that funding, what parts of the business you are going to expand, how you’re going to manage new resources, and more. Without a plan, it’s all too easy to start spending that essential funding on assets and resources that don’t provide as much return to the business as they should. The business should also detail what parts of your services you’re going to scale and how much you need to make from those services to make the new model sustainable. Lay a road map so you know where you’re going.
Not being prepared to scale is one of the biggest risks facing a growing business. Whether it’s not having the funding ready, not having the plan of action or not recognizing the barriers that could be in your way, you can’t afford to make that mistake. Start building your plans as soon as possible, even if that move is still some ways away.