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How To Scale Your Business: 5 Proven Tips That Will Help You Grow.

Whether you are looking to improve business valuation for an upcoming sale or you simply see an opportunity in the market to increase revenue, scaling a business is a river that every successful small business owner will have to cross at some point.

And as 70% of startups fail because they attempt to scale too early, and another 16% fail because they don’t scale soon enough and get outpaced by competitors, it is clear that scaling is a process that few small businesses can get right.

To avoid these pitfalls, keep reading to discover 5 pro tips that are essential for small businesses when scaling.

1. Evaluate and Plan

You can’t decide that you want to scale your business tomorrow and expect to be successful. Scaling a business is a process that evolves over time until the company arrives at a position where it is set to handle explosive growth.

Without the proper evaluation and planning over the course of several years, that day will forever remain a pipe dream.

To prepare for scaling, you’ve got to start with an accurate sales growth forecast. Look at your past sales and make note of how they have grown organically over time. Then project how this sales trend will be affected by evolving market conditions and determine at what point running the business by yourself will no longer be feasible. Finally, estimate the marketing costs it will take to reach this level of demand.

However, even if you estimate this figure with precision, it is only half of the battle. What happens if demand does reach this point? With more sales comes more costs--and they aren’t always proportional to sales increases. How much will it cost to hire another employee or add warehouse space? What if the increased demand causes your quality to go downhill and you lose loyal customers?

Obviously, there are a lot of hypotheticals when scaling a business, and even the most prepared businesses can be taken by surprise by unforeseen market factors. However, without the proper planning and evaluation, your business has little chance of attaining linear growth, so always keep an analytical eye on the future if expansion is part of your big picture plan.

2. Perfect Your Product or Service

Many small business owners are so concerned about growth that they forget selling their product or service to satisfy customer needs is at the heart of all business activity. When growth is put before quality, it can actually cause you to go out of business instead of growing your business because you are exposing more people to an inferior offering, leading to an expanded network of negative reviews and customer complaints.

Therefore, in the early years of your business, while you are still building the infrastructure for future growth, you must spend ample time perfecting your product or service. Listen to feedback, find issues with your offerings, and fix any bugs while your business is still small. When you perfect your offering and learn how to meet customer expectations when your operation is still small, you will be better positioned to handle growth through a deeper understanding of how to satisfy clients.

3. Have a Rock Solid Core of Internal Processes

Business processes will change as you scale your business.

It’s inevitable.

From how products are made to how they are delivered, some things will need to be tweaked as your business begins to serve customers en masse.

However, the core process of what you do and how you do it should remain consistent from your business’ infancy all the way through maturity.