<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=290086984736480&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

Five Tips to Effectively Scale Your Business' Growth

Jun. 27, 2019 | Posted by The Alternative Board
bigstock-Group-Of-Business-Business-Te-213382732 (1)

All businesses need to grow, but at what pace and how quickly should they scale that growth? These questions intrigue (and sometimes torment) business owners, because there’s no single “right” answer and so many variables are involved.

There are powerful reasons to strategically grow your business. “The primary reason to scale a business is to increase profitability,” notes The Balance Small Business, which lists other compelling benefits of growth:  

  • Gain access to a broader range of financing options.
  • Increase sales and other revenue-generating opportunities.
  • Expand current product lines and launch new offerings.
  • Relocate the business to a more profitable geographic location.
  • Attract more high-quality job candidates to open positions.

At the same time, obvious risks come with rapid growth. According to Jim Morris, President and Owner of The Alternative Board Tennessee Valley, pitfalls include “growing faster than the business can fund itself and avoiding poor customer service.” It’s vitally important, Morris adds, that a business owner “create a strategic plan, with projected budgets, to avoid surprises and provide a baseline of what to expect and a plan that can be measured against and adjusted as growth occurs.”

To avoid these and related pitfalls, here are five tips on effectively scaling business growth:

1. Standardize your business processes.

Businesses that don’t plan for growth often end up “reinventing the wheel” when it comes to operations and processes. A company that successfully standardizes processes, on the other hand, can adapt more quickly to growth because operations are conducted in the same manner at all times, employees are equipped with appropriate information and skills to handle growth challenges, and a “process map” is set in place to guide the team towards desired outcomes.

2. Know where funds for growth will come from.

A business must know if it can effectively fund itself throughout the growth process. To achieve this goal, “the business owner should do a cash flow and working capital analysis to determine if the business can fund itself adequately,” notes Jim Morris. This includes “financial preparation and knowledge of both current and future [financial] needs” in terms of expenses related to growth.

Want additional insight? Read 4 Step Guide to Strategic Planning now to learn more

DOWNLOAD

3. Don’t lose sight of your unique selling proposition (USP).

Businesses that fail to successfully scale for growth often lose sight of what made them attractive to customers in the first place. Whatever your USP is, you can’t grow effectively if you “attempt to market a product or service that hardly anyone wants, needs or understands.” As part of your strategic growth plan, make sure the USP that’s worked for you thus far is incorporated into new marketing campaigns, plans for relocation, new product launch, etc.

4. Keep hiring and promotion strategies in mind.

Plans to scale your business for rapid growth should always include an in-depth communications strategy for employees. One likely scenario, according to CoverWallet, involves hiring a new crop of employees to meet increased demands while more experienced employees “become the supervisors or managers of their team [who] ensure that subordinates are well trained in operations.”

Maintain ongoing communications with your team. Make sure they understand the scope of your growth plans and their own roles within that plan. Just as importantly, don’t stint on giving them the resources they need to meet the challenges that come with business growth and expansion.

5. Never lose sight of your customers.

It seems hard to imagine, but businesses “swept up in a frenzy of growth sometimes neglect the very customers who helped them get there.” No matter how much focus and resources you apply to other aspects of growth, keep a close watch on the quality of your products or services and on maintaining the highest level of customer service possible. In the early stages of accelerated growth, having a satisfied customer base is absolutely crucial.

How can you get the capital you need to fund your growth strategies? Download our free TAB whitepaper, “Best Ways to Secure Capital for Your Business” for great financing tips and guidance.

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board

Related posts

Tips for Business Owners and Employees Working from Home
Mar. 18, 2020 | Posted by The Alternative Board
The Coronavirus COVID-19 outbreak has changed virtually everything about the way business is conducted right now. For the vast majority of businesses across the U.S., this means shuttering workplaces...
Why You Need a Customer Onboarding Process as a Business Owner
Mar. 10, 2020 | Posted by Phil Spensieri
Typically, I meet business owners who do not have a customer onboarding process unless they are in the software or hardware space. In IT, deploying and installing software or hardware goes...
How to Hold Your Team Accountable through Goal Setting
Mar. 3, 2020 | Posted by The Alternative Board
Forming and leading teams of employees can significantly boost productivity in the workplace. The key to making this work is accountability. Every member of the team must be held accountable for...
What an Operating Plan Is and Why You Absolutely Need One
Feb. 27, 2020 | Posted by The Alternative Board
Most companies spend valuable time and resources to create strategic plans, giving their best to outline a strategy that establishes a solid long-term vision. While having a strategic plan is...
Growth Explained: Ways to Expand Your Company's Potential
Feb. 4, 2020 | Posted by Grace Fenson
One of the main reasons why many businesses fail is due to lack of scaling. It's not enough to just have a good idea and an excellent marketing strategy. To remain competitive, you need to find new...
Successful Business Tips Every Business Owner Should Know
Oct. 29, 2019 | Posted by The Alternative Board
Running a successful business comes down to the quality and effectiveness of the decisions that you make. Whether you’re just starting out and coming up with a plan, or already have an established...
3 Steps To Delegating Tasks and Lessening Your Workload
Sep. 10, 2019 | Posted by Phil Spensieri
You know how it is when you’re a business owner; so many things to do, so little time. As an owner, your focus is to build your business, but in building your business, there are so many things to be...
How to Prepare Employees for AI and the Future of Work
Sep. 3, 2019 | Posted by The Alternative Board
No one can say with certainty what the future of work will look like. But many elements are already in place, and employers should think long and hard about how their workplace will evolve as the...
How to Build an Awesome Culture of Collaboration in Your Business
Aug. 20, 2019 | Posted by The Alternative Board
“Collaboration” is one of those buzz-words we hear a lot about these days. Of course, a company’s internal operations (and, for that matter, its customer-facing processes) should be driven by...
What's the Difference Between Business Development and Sales?
Jul. 18, 2019 | Posted by The Alternative Board
At first glance, there doesn’t appear to be much distinction between business development and sales. Aren’t both activities geared towards generating more profit for the organization? Isn’t a sales...