Scaling your business for success

When launching your business, scaling up may seem like an insurmountable goal. However, having a growth mindset from the outset is crucial for your future sustainability and revenue generation. Like many large enterprises that started as one-person operations, as you acquire more customers and your team grows, so the growth phase begins. 

Expansion is not a linear journey. For starters, the difference between successful and stagnating businesses is often linked to the team that every entrepreneur surrounds themselves with. Bringing the wrong person on board may not only set you back from an operational perspective but can also become an expensive mistake.

Ensuring you have a clear employee or partner description written up can make all the difference, even if it takes a while to get it right. The adage, “hire slow, fire fast”, comes to mind.

As exciting as business growth phases can be, growing too fast without having the right systems, processes, people and platforms in place often leads to the negative side of the hustle culture so commonly associated with SMEs. Whether you're offering a product or a service, not being able to deal with the increased demand can backfire badly and lead to poor customer service.

To unlock your business's potential, consider the following:

Demand should determine expansion.

Without demand for your product, expansion can become a costly and ultimately ill-advised endeavour. But when the demand is there and expansion becomes necessary, one of the first things to nail down is your expansion plan. Do you want to specialise (improve the product, add features or functionality) or diversify your offering? What supplementary products or offerings can be added to the brand that will meet the demand and take your business to the next level?

How does your projected revenue compare to your increase in costs or overheads?

This is non-negotiable. If you have extra overheads and need to hold large volumes of stock, you either need available funds to cover future costs and reserve capital should the projected sales not materialise or if the go-to-market strategy takes longer than expected. You should have enough to cover at least three months of expenses, and remember that if you have to buy wholesale stock (which could sit for some time), you need enough cash flow to bridge that gap.

Is your product and customer experience properly thought through and tested?

In your haste to get your product to market, you might rush the process without undergoing the necessary due diligence. Entrepreneurs are notoriously impatient, but taking the time to get it right will ensure faster adoption and greater talk-worthy/shareable experiences.

Is your team properly trained?

When you on-board new team members, you have to invest in their training and afford them the opportunity to learn the ropes. Going through the growth curve affords every business owner the opportunity to create new growth opportunities for loyal team members and put them onto new opportunities while affording new team members the chance to find their feet in familiar territory.

Is your tech up to the challenge?

If your product is based on technology, any glitches or bugs can have a negative effect on the customer experience and ultimately the product's viability. Therefore, it is essential to test, test and test some more before putting anything new into the market as part of your expansion plan.

Do you have everything in hand to apply for business funding?

Securing funding for business growth is a natural step in the scalability process. When all of the above is in place, alternative funding providers like Retail Capital can help take your business to the next level. By digitising your transactions, funders can make offers based on real-time activity and you can get access to a world of preapproved funding offers that can be in your account faster.

Wherever you look for funding, you will need to make sure you are using a reputable partner. As part of the application process, you can expect to be asked for your transaction history, proof of business ownership and reassurances that your business is in good standing, among other things.

These are just a few key factors to consider when building your business. Take note of them and enjoy the journey as your business flourishes.

Bloem is GM of funding at Retail Capital, a division of TymeBank. This article is sponsored by TymeBank.