Scaling up a business is not a simple task. There is a multitude of dynamics that business owners need to have a full understanding and grasp of. First, you need to know when to scale. Also the cash flow to scale up business must be strong, its operational foundation strengthened and the ‘secret recipe’ all worked out before it is ready to embark onto its second-stage business. Now that you are ready to scale up, below are a few more tips to get you going.
1. Set a goal
Where do you want to take your business to? Do you want to grow it 5 or 10 fold? Think Big. Work out the strategies to guide your business to achieve the target goals. Identify and prioritise the activities.
2. Build the dream team
No one can do everything on their own. Modern business requires such diverse skills that it is not feasible for an individual to possess all of it. We need a team comprising people with different skill sets. It is vital to carefully select the people and build this dream team (including mentors and advisors) that can help support the business to achieve its goal. Ensure to attract the brightest who will share a similar vision on critical activities such as sales and marketing, brand management and product development.
3. Stay connected and updated
In today’s world, successful business is simply unable to achieve in isolation. It need to establish a network that can support the business to the next level. It is a fact that a significant amount of business deals is concluded and sealed through a personal relationship. It is all about who you know in the business. Thus stay connected to the world and be known as an expert in your domain.
4. Strong finance / cash flow to scale up business
Scalability often requires strong cash flow to scale up business, increasing in sales requires a larger operations and higher company expenses. Therefore, it is crucial that businesses have a financial plan in place to be able to dip into ready funds when the business inevitably needs to. To have the cash flow to scale up business, some of the options are, obtaining business loan, raising capital against equity or use the business’s asset such as receivables to turn into cash.
5. Stay focused
It is easy to get distracted with the day-to-day operation which often distracts the business owner away from the more important ultimate goal. Ensure that you focus on the critical activities to achieve your long term goal. Less crucial tasks can be assigned to well trained and trusted employee/partners.