There comes a point in time when small businesses and franchises hit a plateau. Scaling your business means that your business model is designed to grow faster than your costs, sustaining itself as the business takes off.
Growth is expanding your capital and staff in a bid to increase revenue. Whether you want to grow or scale your business, here are seven strategies to help you scale your business sustainably without losing control.
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Why scaling matters more for SMBs and franchises
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Large corporations can absorb costly mistakes in a way that SMBs and franchises simply cannot. Whether you own a single coffee shop or a chain of cafes, there are risks to growth. If your business grows too fast, you’ll face a cash flow crunch, and if it grows too slowly, you run the risk of falling behind the competition.
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We have all seen cafes that start with one unit and rapidly expand before collapsing. Ultimately, the number one reason SMBs fail in Australia is cash flow.
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7 strategies to scale and grow
As you look to bolster your business credentials, explore these strategies to scale and grow your business.
1. Strengthen the foundational cash flows
The most successful attempts at scaling a business hinge on a healthy cash flow. You can strengthen your cash flow foundations by using helpful tools like Xero and MYOB. Alternatively, you could enlist the services of an external advisor who can help you manage outflow and inflow.
2. Systemise growth
Growth should always be factored into your plans, and it starts with your systems. Do you document your processes to ensure compliance and paper trails to prove it? Do you have a robust customer relationship management (CRM) platform like Salesforce that eases your load? What about an invoicing system to create a seamless delivery and payment process? The system is there to prevent complete chaos across your business when volume grows.
3. Focus on the best
Whether you sell products or services, don’t be afraid to double down on what works for you. If you have two lines that outsell the rest, double down.
If you have a service that delivers margin consistently, double down. Don’t be afraid to focus on what works for you. Equally, you shouldn’t be afraid to trim all the products or services that drain your resources.
4. Empower your people
A well-run business operates the same way, whether the owner or manager is on the premises or not. However, growth will stall if the owner or manager takes everything upon themselves.
It’s not a sustainable way of working, so you should be training your people and empowering them; that way, you can delegate where possible and outsource if you need to. Tools like OnlineJobs.ph can match you with offshore admin and marketing talent.
5. Utilise technology
Repetitive tasks should be automated, which means utilising technological tools, such as Rippling, BambooHR, and Employment Hero to handle payroll, and HubSpot and Mailchimp for automating your marketing efforts.
The best HR tools automate payroll, ensure compliance, and offer onboarding options as well. These are essential tasks, but they don’t need to slow your team down when there’s a better option. Likewise, marketing tools handle repetitive work so you can focus on scaling your business.
There is a major financial impact associated with a single hiring mistake. According to figures, one bad hire can cost up to 150% of an annual salary once you factor in the lost productivity, retraining, re-advertising the role, and turnover costs. Hiring mistakes cost less when technology handles a large part of the process.
6. Customers at the core
Every business has customers, and retaining yours is much easier than finding new ones. Your customers should be at the core of everything you do in business, which means building a team that delivers standout customer service and following up to ensure happy customers leave reviews and refer others to your business.
You can utilise tools like Zendesk and Freshdesk to automate emails to ensure your customers feel valued.
7. Tap into your network
No business can stand alone, and if you isolate yourself, you run the risk of reaching that plateau. Instead, join industry associations, franchise councils, and chambers of commerce to keep your finger on the pulse of the local industry.
There are mentors everywhere; you just need to reach out to the knowledgeable industry giants who can give you perspective and help you avoid costly mistakes.
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Revenue + resilience = Scaling your business
While some business owners think scaling is about chasing growth, it’s about building a system that works, empowering the people within that system, and ensuring a strong foundation to allow your business to expand without breaking down.
True success goes beyond revenue. It’s about sustainable growth, driven by revenue and resilience.
