The early days of establishing your business are a time filled with excitement and vigor. You face new challenges and are fueled by the initial support of those around you. But all that changes when you reach the middle ground. The spot between being a startup and a successful corporation. A plateau where only 80% of small businesses survive.
Once the time comes when you’ve fully established that there’s a demand for your products or services, you’d have to think about something more important than just starting. You’d have to worry about scaling.
Scaling is crucial for businesses in all industries because it is directly linked to your growth and success. And to successfully scale your small business, you won’t only have to spend money but also time, and most importantly, effort. With that in mind, here are the three crucial factors you have to invest in to ensure that your small business is geared up for scaling.
Invest in your network as early as possible.
One of the most basic things you have to understand before starting your own business is the importance of networking. As your enterprise’s growth plans become more concrete, so should your connections be.
Your network gives you access to opportunities that would not be available for you independently. First of all, you need to find proper legal counsel. Your transition demands a lot of decisions that would be better made with professional legal counseling.
This is especially true if your business revolves around patents and copyrights. Connections with lawyers and government officials can also help expand operations to new states, especially ones with different tax laws. And having contact with bail bondsmen can also come in handy if things go awry.
You should also have financial advisors and accountants on speed dial. Making profitable decisions can become easier if you listen to advice from people specializing in finances. Having a lender at your disposal is also beneficial in times of need.
And most importantly, invest in building relationships with your competitors. Healthy competition can help your business grow, innovate, and generally improve in all aspects. Learning from those who failed before you can help you avoid the mistakes they’ve made. And getting to know the techniques of those who became successful faster than you can help set you up on a better path.
Invest in your workforce.
Invest in people. Your business might be directed by your vision. But at the end of the day, it’s the collective effort of your employees that will get you to where you want to be.
One of the biggest and most common mistakes business owners make is neglecting the importance of their employees. Upscaling a business usually means more delegation for you as an owner. And delegation won’t be successful if your team isn’t well-equipped to handle the changes your business move has caused.
If you want to have an army of a thousand elite soldiers, you must first ensure that you have ten elite generals who can turn any bystander into a one-person army. Having your core team trained to become skilled and loyal leaders will only help make your transition smoother.
Invest in homegrown leadership.
As stated above, upscaling your business means more delegation than you’re probably used to. You’d have to start worrying about bigger things than day-to-day operations. And this will only work if you have trusted leaders to take charge.
The best way to get these leaders is through developing them yourself. Internal hiring for leadership positions is a smart business move for many reasons.
First, the promise of growth within your company can drastically boost morale in the workplace. With career advancement as a reward, there’s a chance that everyone will give it their all every day.
Second, it promotes loyalty. When you should be focusing solely on expanding, not having to worry about turnover rates is a blessing. If your employees know that they have a future in your company, they’d be more willing to stay.
Lastly, you’d know who you’re dealing with from the get-go and vice versa. You’ve worked with them for a long time, and you already know their strengths and weaknesses. This means it will be easier for you to find ways to maximize their potentials and fill in their shortcomings. The same goes the other way around. Since the person you’ll be promoting already has been in your company for some time, that person also knows what you’re lacking.
The bottom line
To gradually increase your revenue without having to incur consequential costs, investing in the intangibles should be done as early as possible. If you want to fully scale your business without the risks of significant financial losses, then you have to start looking at the bigger picture starting today.