What’s Stopping Your Business From Scaling Up?
Most people would agree that part of the point of having a business is to ensure that it is growing and growing as much as possible. The more it grows, the more profit it makes and the more successful it becomes. So it’s hardly surprising that growing a business larger is usually on the cards for most entrepreneurs and business leaders. However it’s not always straightforward to ensure that this is actually possible, or that it is happening as fast as you might want it to happen.
The fact is, there are a lot of things that might be holding a business back from scaling up properly. In this post, we are going to take a look at some of the possible reasons that your business might not currently be in a good place for scaling up. Once you have dealt with these concerns, you should find that your business is in a much better place and that you are likely to be able to scale it up a lot sooner, and more effectively too.
Check Your Patience
First of all, it can be a good idea to check in with yourself and look at your own patience levels. You might be quite surprised at how impatient you are getting, and this can happen so easily and subtly that you might not even realize it is happening. So taking a look at this and seeing whether you might benefit from trying to be a little more patient, can be a really useful early step to take. When you check in with your patience levels, do you find that you are expecting things to happen more or less immediately? This is a sure sign that you might need to change things around somewhat.
Of course, if that does seem to be the case, all you need to do is to ensure that you are trying to work against that somewhat. That way, you should be able to keep yourself in check, and that can actually make a huge difference to your experience of scaling up your business. If nothing else, it will make it feel as if the growth is happening significantly more quickly, so that’s a great thing that you might be happy for.
Lack Of Expertise
Sometimes people start up a business in an area that they are not yet quite an expert in. In itself that is not necessarily problematic – you might just need to learn a thing or two, and that’s perfectly okay. However, it’s important to think about what you can do about it, should it turn out that you really do need considerably more expertise in order to get your business going and growing strong.
If you think there is too much of a lack of expertise in your business, then it’s a really good idea to make sure that you are filling in those gaps. That might mean learning something yourself, going on courses and the like. Or it might simply mean that you need to hire some new people who are likely to help you out by having that necessary expertise.
Either way, it is going to mean your business is much more likely to scale up, and more at the kind of rate that you would probably prefer.
All businesses need to ideally have a strong understanding and awareness of the concept of shrinkage, because it’s the kind of thing that is going to have a significant impact on how things work out and how the money is looking for any business. Shrinkage is simply waste or loss that comes about through unknown means or reasons, and it is something that can actually happen quite a lot, causing a lot of nuisance when you are trying to make your business as profitable as possible.
One of the problems is that shrinkage comes in many forms. It can be theft by staff or customers, or fraud. It can be the loss of intellectual property online. Or it can even be something like having too-high thresholds for chargebacks, when credit card payments are reversed. You can always learn more how to cut costs by preventing chargeback claims, and you should do so if you want to cut shrinkage, but you’ll also need to focus on those other issues.
As long as you can reduce your shrinkage at least a little, it’s the kind of thing that will make a considerable difference to how likely your business is to scale up, so that is something that you should definitely think about.
Perhaps the actual revenue you are taking into your business is high enough, but the way in which it comes is somewhat less than perfect. For instance, you might find that you are having sales come in quite intermittently, which is something that a lot of businesses often find themselves struggling with. This can happen for a number of reasons. It can be due to the nature of the service or product you offer, or it might be a seasonal thing outside of your control. In any case, you’ll want to pay attention to it and make sure that you are doing all you can to stop its impact on your business.
One way to do that, ironically, is to start scaling up anyway – by offering a wider range of products. As long as you have a decent enough base to work from, this can be quite effective, though at other times it might be a fairly high risk thing to do. In any case, you should think about it if you find yourself with the kind of business where intermittent sales are something of a problem.
Over-Subscribing To Software Solutions
It’s a time when there is always a new solution being offered for every problem under the sun, and that is something that can be hard to go against the grain. However, if you want to scale up your business, having a lithe company can be a really important part of that, and you’ll therefore want to make sure that you are looking at whether you actually need all of the software systems and suites that you are currently using.
Essentially, what we are recommending here is an occasional purge of your systems. Go through all of them and ask yourself whether it’s really essential. If you are not sure you need it, just get rid of it – the stricter you are with yourself here, the better. If you can do that, you should find that you are going to soon have a much more streamlined business, in a much better position to scale up.
Most people have to borrow at least some money in order to have the means to start a business. If you had to do that, and you are wondering about whether you are ever going to be able to pay off that debt, that can be an enormously stressful position to be in – and it’s the kind of thing that can make growing your business considerably more difficult too.
If you have some debt, it’s best to try and pay it off as soon as possible, or to pay as much of it as you can, before you start to think about scaling your business up too much. Of course, there is also an irony here, which is that if you had more income and sales coming in, you’d be able to pay your debt off faster. So there might be times when just scaling up a little is actually the best next step to take.
It’s up to you, and nobody can tell you what’s right – except your shareholders, of course. Just make sure you are doing right by the business, and you should hopefully be able to scale up a lot sooner.
Having No Plan For Growth
You are unlikely to get very far with your scaling up process if you haven’t really decided how you would go about doing it. That might sound elementary, but it’s one of those things that are often overlooked, and you do need to make sure that you are thinking about this if you want to keep your business from stagnating. Simply put: if you don’t have a plan for growth, it’s unlikely your business is going to grow all that much.
Of course, it can be tricky to figure out a good growth plan, but it’s something that you can make a lot easier for yourself by researching it online and with people who have experience in this kind of thing. You might be surprised at how much that can help, in fact. And once you have a plan in place, your likelihood of properly and effectively scaling up is going to be considerably higher.
Those are some of the main things you’ll need to look out for if you are hoping to scale up your business. Bear those in mind and you should see some real growth happening faster than you think.