When Is the Right Time to Scale Your Business?
How do I scale my business?
I see this question popping up all the time.
Every big company started off as an idea and had to scale up at some point. Even in the early days, Amazon was just a website that sold books online.
According to the statistics, scaling your business means the odds are stacked against you. I agree.
In my first business, after 14 months of continuous struggle, we scaled from $1 million to $12 million in 5 years.
Sounds impressive, but this growth tore me apart. I burnt out and lost everything I had worked so hard for. A very expensive learning curve.
I definitely do not want to see this happening to you. From my experience, I believe before you ask the question, “How do I scale my business?” you should ask the question, “When should I scale my business?”
Here are some personal lessons to help you decide if you are ready to scale, or are you setting yourself for failure?
1. Do you have enough customers?
Scaling does not bring in more customers if your current business is not attracting enough customers.
There is a difference between scaling a proven model that has a successful and functioning sales and marketing pipeline, and scaling a business in hopes, that scaling brings in more customers to fill the current void.
2. Do you have systems in place that can handle the growth of your business?
Do you have systems in place to handle the surge? If you can’t handle your current load, you are not ready to scale.
To find out the truth to this question, ask yourself, “Is my business strapped to me. Is my business dependant on me to survive?”
If your answer is yes, you are not ready to scale.
Most companies believe that just hiring more employees will fix the problems that naturally come with growth, but that’s not always the case. If the critical foundations aren’t set up correctly from the beginning adding more staff will amplify the issues.
3. Are your services packaged as products?
This seems to be a tough concept for many to get their head around. You can’t scale services where you are exchanging time for money. You can only scale when your business is set up so it can grow independent of you and your time.
Remember this. Your products or services do not make you money when scaling a business. Your systems do.
4. Do you have a Raving Fans Strategy that can be scaled?
Usually, the first thing to go bang when scaling is your customer service. You are so busy focusing on the growth; your customer service takes a hit.
Any business should have “raving fans” as part of their marketing strategy, backed by a solid strategy to ensure it is executed.
5. Do you have a Control Dashboard?
Does your business have a control dashboard, where you can see weekly or monthly how you are tracking and where you are running into trouble?
Being able to identify potential changes for growth or issues is one of the vital components required for making wise business decisions.
Scaling without these controls is like trying to steer the titanic through the mist, and hoping you somehow miss the icebergs.
6. Do you have these current issues?
Cashflow, not enough time, stress, low profits, low sales?
Scaling will not fix these issues. Scaling will multiply these problems.
You must have the basic business foundations in place and working before you try and scale.
Unfortunately, there are no shortcuts in business.
Scaling your business is not a short cut to get rid of your daily business problems.
I hope these lessons will help guide and protect you on your journey.
Find Out How a Small Business Coach Can Help You Grow & Scale Your Business Effectively
Trying to survive in business can be exhausting, especially if you are always trying to solve the problems yourself. Are you frustrated, confused, and not sure what to do next? This is not how the picture of your business should look.
I understand this completely. I have been doing this for most of my adult life, and many times I have had to deal with struggles and pain alone.
Being a small business owner doesn’t have to be a lonely ride.
- Do you want help systemising your entire business operation, so you do not have to worry each day?
- Need a practical exit strategy to turn your business into a valuable asset to set you up for life?
- Want a proven marketing plan that has helped many other “offline” businesses just like yours to successfully integrate and grow their brand online?
- Do you want to remove yourself from the daily grind and get your life back?
- Do you want to optimise your business, improve efficiency, ramp up sales, maximise profits, reduce overheads and improve cash flow?
- Need help managing and motivating your team to operate at optimum performance?
If so, we should have a chat.
In the meantime, have a look at some real results from our previous clients. Many of them are small business owners who were struggling with similar issues you may be experiencing right now.
I hope that you find this useful. If you would like a no-obligation, pitch-free business discovery session to see if we can help you get to where you want to go, then please book a time here.
I certainly would enjoy helping you on your business journey, whatever stage you are at, to reach your lifestyle of choice.
Thanks for sharing your time with me. I look forward to discussing how we can get your business working for you.
As always, I wish you all the very best.