5 signs your business is ready to scale
I once read a quote by James Cash Penney and it has stayed with me ever since. "Growth is never by mere chance; it is the result of forces working together." And in all sincerity, we can say that growth is always a decision you make after analyzing every aspect of your business closely.
All entrepreneurs can resonate with me when I say that scaling a business is not a cakewalk. It can be equally challenging as it is advantageous. When you have a set customer base and a team to cater to the clients, it’s time you think beyond “start-up” and head towards new avenues for growth.
But when it comes to scaling a business, every step has to be measured and strategized. Businesses falter when they fail to make the right decisions at the right times. Growing a business takes way more than just decision-making. There are certain goals you have to reach before thinking about taking the next step.
So the main question remains, how to actually know that the business is ready to scale?
Well, after you have achieved a set number of milestones and checked certain goals, you might be ready to scale your business. Here are 5 signs that can help you make the decision towards scaling your business.
Your business is ready to scale if you have!
1. Acquired a strong customer base
Setting up a customer base is one thing, but making it strong takes up a whole lot of effort. It includes the concept of user retention and building a loyal client base. A strong client base is something every business strives for. Many startups fall out of the race just because they are unable to establish a client base in the first place. While others fall prey to premature scaling, i.e. scaling the business without having the apt clientele for it.
As a business owner, each step you take on the growing ladder has to be well calculated and thought of. Having a client-first approach can nudge you in the right direction. Having set up a customer base and acquired clients that are loyal and are coming back to you, that’s your cue to scale.
2. Built a core team of skilled professionals
A strong core team is another feather in the cap as it is rightly said, a business is only as good as its team. But team building is yet again a process that requires time and management. It is something the business owners should invest in and prioritize. A capable core team that can drive the business towards growth is one investment that is sure to yield sweet fruits and is an added perk to any business.
So if you have curated a core team that you can rely on, you also have to make sure that they are constantly being challenged. A growing business will be useful for putting their expertise and experience to the best use. So once you have set up a core and efficient team that has been delivering constant results, you might be ready to take your business to the next level.
3. Established an apt business infrastructure
A strong infrastructure is always a mandatory asset for any business. It includes the proper structural hierarchy, management, finance, etc. Sometimes it becomes difficult to manage things on a tight premise and you may need additional premises to be added to grow. In order to make such decisions, business owners need to settle down the finances and other management areas.
One very important factor before scaling that matters here is concept work. Once you have a clear concept work in mind you can establish an unshakable infrastructure. So if you are sure that your business infrastructure is reliable and proven enough, you are ready to scale. Putting a proper framework and management in place before pacing up will help save some crucial time later.
4. Been turning away clients
Clients make or break your business. Vince Lombard has rightly said, “It takes a month to find a customer and seconds to lose one.” There are not enough words to explain how right these words are.
So when it comes to managing clients, business owners and leaders are always on thin ice. I have shockingly seen many businesses that have achieved all the above three but are still unable to deliver to their clients. So much so that they end up turning clients away.
This is mostly because they have been working rigidly and are content with the progress they have made. When in reality they can move beyond that and build something bigger.
As a business owner, if you have a good client base but not enough resources due to which you have to turn clients down, that is a sign you should scale. This is true especially in cases when the supply of the product is running short while the demand is progressively high.
5. Achieved all your business milestones
Have you ever thought about how your business will be in the next five or ten or even fifteen years? Every business has some set goals in mind for which they continuously work hard. Those goals may be short term or long term or sometimes specific milestones that the business tries to achieve. These goals most definitely help to drive the business in the right direction and help you know that your hard work and sweat are paying off.
So before making your big leap ask yourself if you have achieved the crucial goals and milestones that you have been setting every year or so. Because if you are able to achieve those constantly, now may be the right time to think about scaling your business.
Summing it up
Scaling your business is a whole process way bigger than management. When you are done with all the important strategies and development take this article as a final checklist. If you are able to check all these five, you can say for sure that you are ready to take the giant leap.
Scaling up at the right time can lead your product and business towards long-term success and growth. So ensure that you do it with full strategy and confidence. And always remember that small things pertain to business growth as much as big decisions.