How to scale an existing business
What it means to scale a business means different things to different people. To some scaling is the act of growing their customer base or entering new markets, while to others to scale would mean increasing the number of people it employs, the amount of products in their range, or the selection of services it offers. Whatever scaling means to you, it is no doubt an exciting phase. It is also a stage in any business’ life that comes with its own set of challenges and opportunities.
Whether you’re expanding into new markets, increasing production capacity, or adding new products or services, careful planning and strategic decision-making are crucial for successful growth. Here are ten key points to consider when scaling an existing business with your individual ambitions in mind.
1. Market demand – Before you get to the task of scaling, be sure to assess the demand for your products or services in new markets or among different customer segments. Conduct market research to understand customer needs, preferences and buying behaviour, and if the demand isn’t there, be prepared with a plan B.
2. Your infrastructure – The infrastructure that works for your business now won’t necessarily produce the same results when your business scales. Ensure the technology, operations and supply chain behind your business can support any increased demand that comes with expansion. If it doesn’t, invest in scalable systems and processes that streamline operations and improve efficiency.
3. Customer experience – Whatever your business scaling ambitions, don’t forget about your customers along with way. You should always aim to maintain a customer-centric approach throughout the process, and continue to deliver the exceptional service and experiences to retain existing customers and attract new ones, even during this period of transition and growth.
4. Your team – Establish the support you need to scale effectively by investing in hiring and developing a talented team. Empower employees with the necessary skills, resources and autonomy to drive success and business growth.
5. Business finances – Monitor and manage your finances closely during the scaling process. You’ll need to develop realistic financial projections, control costs and explore funding options to support expansion without compromising profitability.
6. Marketing efforts – Increase your marketing efforts to reach a broader audience and drive brand awareness. Utilise a mix of online and offline channels, targeted advertising, and strategic partnerships to attract and engage customers.
7. Business model – No business model should be set in stone. The best business models are flexible, moving with the times, and the demands of the audience and wider market. Assess whether your existing business model is suitable for scaling or if adjustments are required. You should consider factors such as pricing, distribution channels and revenue streams to ensure viability and long-term sustainability.
8. Quality control – Preserve the quality of your products or services as you scale. Implement quality control measures, invest in training and development, and prioritise customer feedback to continuously improve and innovate.
9. Risk management – Scaling can be risky business, which makes the identification and mitigation of potential risks and challenges crucial to your success. Supply chain disruptions, regulatory changes and competitive threats are just some of the challenges that could cause issues. Develop contingency plans to address expected and unexpected obstacles, and emerge the other end scaled and successful.
10. Key performance indicators – To ensure your scaling objectives are well placed, your progress should be measured every step of the way. Establish key performance indicators (KPIs) to track progress and measure the effectiveness of your scaling efforts. Analyse data, gather feedback and be willing to repeat the process all over again to give you the insights to adjust strategies and achieve your growth objectives.
By considering these ten points when scaling your existing business, you can navigate the complexities of growth more effectively and position your company for long-term success in a competitive marketplace. Remember, scaling is a gradual process that requires patience, strategic thinking and a commitment to delivering value to your customers.
