In the beginning, most Entrepreneurs start with a
great idea, build a solid product or service, employ some marketing
techniques, generate a customer base, and start off well. But after
achieving some success, they get ‘stuck’ and despite all efforts struggle to
move ahead. This is an indication that a different set of strategies, called
‘scaling’ has to be introduced and implemented.
Scaling a
business is different from ‘Growing’ a business. Growth means an increase in revenue by increasing the resources, while Scaling is an increase in revenue
without a proportional increase in the cost of production. In other words,
scalability is the ability to grow without being impacted by the available
resources, when production increases.
Incorporate some essential components to scale one’s business:
1. Processes: write down simple processes to
make things work. Clear and simple guidelines will also help the new hires
to integrate into the business quickly.
2. Use Technology (Automation) to increase productivity, and free your most valuable (and limited) resource - time, which can
then be used in building your business and growing, which is the main feature
of scaling. Automation can also provide detailed analytics, to areas requiring
focus.
3. Define your Vision: Money and facilities motivate employees for a short period. What brings everyone together is a common Vision. A powerful Vision bond motivates and creates synergies for the company to grow.
4. Nurture your People: People, resources, and skillsets keep changing as the business grows from a few customers to hundreds, thousands, and then millions of customers. So, hire people with diverse skill sets. Have a culture of risk-taking and making mistakes. When your team shares your vision of growth, then make efforts to retain them by paying them well, investing in their development, etc
5. Remain Focussed: Getting distracted and losing focus from your primary reason for getting into this business (which is, attempting to solve a problem, profitably !) is easy. Remain focused on your niche, and how you want to service customers, and then set your goals and plans.
Connect with Business Coach Manish Jain to learn the framework that can help you scale up with the right framework.
