Strategies to Effectively Scale Your Small Business Growth
Every business dreams of rapid growth. When your product or service sales accelerate with your marketing and advertising efforts, you’ve hit the sweet spot. But if you don’t have a strategy for scaling your business as it grows, you are bound to run into detrimental challenges and set-backs.
At Pioneer B1, we help our clients find business solutions to the good problem of rapid growth. We know that implementing a business scaling strategy is key to your ultimate success. So, what scaling strategies do you need to consider as you grow?
Growth vs. Scaling
Before we talk about specific strategies for scaling your business, we want to address the difference between growth and scaling. No matter what industry you’re in, growth rates are essential markers of success. In the beginning stages, small to midsize companies are often aiming for exponential growth in order to establish themselves in the market.
However, the old adage that “it takes money to make money” is true. It takes a lot of resources to maintain consistent growth.
When we talk about the difference between growth and scaling it is one of resources.
Growth occurs when a company adds new resources (people, technology, capital, etc…) as a result of demand and revenue increases.
Scaling happens when processes are put in place that allow for revenue to increase without the need for a significant addition of resources.
4 Business Scaling Strategies
1. Clarify Your Goals
What does success look like to you? Is it revenue growth, geographic expansion, a community of loyal customers, or a better quality of life for yourself and your employees? Getting specific about what you want to accomplish and how you want to get there (think company culture and processes), is an essential first step to understanding not only how to grow your business, but also how to scale and manage resources efficiently.
2. Hire the Right Team
Ultimately, people are what will make your business successful. You can have an incredible product, but without forward-thinking people on your team who look to solve problems and take action, your company will struggle to scale. One ambitious employee who has potential will often serve your company better in the long run than several with the “right skills.”
3. Leaders Should Lead
All CEOs of small to midsize businesses remember when the company grew to a point where they needed to step back from the day-to-day and start “seeing the forest through the trees.” A good CEO provides direction for their team and needs to see the bigger picture with acute clarity. If they get bogged down with the everyday processes instead of hiring a team they can trust, scalable growth will be difficult.
4. Invest in Process Management
Once your business grows to a certain size, it becomes more and more challenging for each department to communicate effectively with each other. In an environment where time is money and a very precious commodity, multiple disconnected software systems, limited visibility, weak warehouse management, redundant data entries, and expensive technology costs all threaten to impede your companies ability to scale effectively.
Implementing an Enterprise Resource Planning (ERP) software specifically customized for small to midsize businesses can empower your people to make smart decisions faster and allow you to spend more time growing your business.
#1 ERP for Small to Midsize Companies
SAP Business One is a single, integrated solution that over 70,000 businesses worldwide use. It gives you superior control over the entire operation. All of your information is stored and updated in real-time so that the most up-to-date information is driving your company in every department.
Unlike accounting packages and spreadsheets, integration with SAP Business One can manage every aspect of your business from inventory, production, accounting, sales, and more. When you partner with Pioneer B1, our expertise and passion for client success combined with the best ERP system for small to midsize businesses will help you reach and exceed your company goals. See what our team of highly-trained SAP professionals can do for your business!