If you’ve already launched a business and are running a thriving enterprise – congratulations! Of course, the next step is to successfully grow your company and boost your bottom line. Successfully scaling a business can be tricky, regardless of what industry you operate in.
As well as deciding which opportunities to pursue, you’ll need to determine how you can facilitate a meaningful boost to your bottom line. Furthermore, you’ll want to increase your turnover without negatively impacting your current profits.
With so many variables to consider, it’s easy to see why so many business owners struggle to grow their enterprises. However, scaling your business is the only way to substantially increase your income. If you want to avoid the pitfalls that business growth can bring, take a look at these top tips for scaling your business…
1. Research your industry
As a successful business owner, you’ll already have in-depth knowledge of your sector. However, don’t let your existing knowledge cloud your judgement. Be prepared to start from scratch and research your industry as if you’re a newcomer.
There’s never just one way to scale a business, so you’ll want to assess every option that’s available to you. Whether you’ve been in business for 12 months or 12 years, there’s always more to learn. By examining your sector with fresh eyes, you can uncover potential growth opportunities you may have been unaware of.
Remember to record all of the possibilities as you uncover them. Even if they seem unrealistic or futile, make a note of them. Your first impressions of an opportunity may not be positive. But this doesn’t mean you won’t go back to them at a later date. As you gather more information, seemingly unachievable growth plans may become realistic prospects.
2. Cut your costs
Substantial business growth requires some form of investment. If you can reduce your existing costs, you’ll be increasing your profit margins and broadening your horizons. Implementing cost-cutting reforms can be daunting, particularly if your business has been ticking along nicely. However, it’s always important to minimise your expenditure. When you’re planning to scale your business, it’s important to eradicate unnecessary costs.
Fortunately, there are plenty of ways you can reduce your commercial outgoings. If you’re in the construction industry, changing suppliers and buying building products online might be a viable alternative, for example. For businesses in the healthcare sector, focusing on selling in bulk to larger clients could reduce the cost of your raw materials.
Similarly, you can reduce your costs by increasing efficiency within the business. Introducing new processes or refining existing ones can be an effective way to improve your productivity. In doing so, you’ll automatically increase your profit margins and be able to increase your income without your expenditure rising.
Once you’ve eradicated waste and made your business leaner, you’ll be in the best position to grow your firm and increase your profits further.
3. Consider new markets
Entering a new market is a sure-fire way to boost your bottom line – providing you get it right. Although new markets present a wealth of opportunities; successfully launching into one can be as difficult as when you first started your business. In some cases, you may find that entering a new market is trickier than when you launched your existing enterprise.
If you offer B2B IT repair services, for example, you may want to expand into the B2C market. However, consumers will typically use different devices and have varying requirements when compared to business clients. In addition to this, your name may already by synonymous with B2B IT services. In addition to marketing your brand to a whole new sector, you may have to introduce new processes and services to cater to your new market.
Another way to tap into a new market is to expand your geographical reach. If you sell goods in the UK, for example, you can reach an ever-increasing market by expanding to Europe, the Americas and the APAC region. However, you’ll be going up against new competitors and will need to market your brand extensively in a new market. In addition to this, you’ll need to consider the legal and tax implications of exporting goods into new jurisdictions.
While new markets offer a fantastic opportunity to scale your business, careful consideration is needed before you make the jump. Many business owners assume that entering a new market will simply mean an increase in sales, but things are rarely as straightforward. Providing you carry out due diligence and consider every aspect of the venture, however, tapping into a new market could be an effective way to scale your business.
4. Attract new customers
If you want to increase your profits, securing a bigger share of the market is one way to do it. Although a substantial increase in new customers may mean expanding your existing production lines or processes, it can be one of the most cost-effective ways to grow your business.
To successfully attract new customers, however, you’ll need to modify and enhance your marketing activity. With campaigns aimed at all members of your target audience, for example, you can establish your brand in the eyes of consumers or clients. The digital revolution means it is easier than ever to reach your target customers, but it does require a significant amount of time.
You may want to run an intensive SEO campaign to boost your search engine rankings, for example. Similarly, launching PPC campaigns, increasing your social media activity and enhancing the quality of your backlinks can raise your online profile and enable you to attract more customers.
If you’ve been managing your own marketing activity thus far, it might be time to consider outsourcing to a specialist firm. The time required to run an all-encompassing campaign could take you away from your core business activities, which won’t contribute to increased profit margins. By using a specialist marketing agency, however, you can benefit from their expertise whilst reclaiming your time.
5. Open a new venue
For bricks and mortar businesses, opening a new venue is always a viable way to scale your business. If you have a physical store, restaurant or bar, for example, launching a second venue can expand your company and dramatically increase your profits. Of course, selecting the right location will require as much research and due diligence as launching your initial venue did.
When it comes to funding, however, you may find it easier to secure the financing you need. If you’re already operating a successful business, potential investors or lenders will have evidence that the existing venture is performing well. This will give them confidence in your abilities and your business model, which should make them more amenable to investing.
Furthermore, your existing business and assets can be used as collateral to secure funding. While this could put your current profit stream in jeopardy, the right level of risk will enable you to protect your existing organisation and secure the financing you need.
Boost Your Bottom Line More
In addition to this, your experience in the industry and insider know-how will ensure you’re in a good position to succeed with this type of growth plan. As you’ve already encountered many of the difficulties and obstacles associated with launching a bricks and mortar business, you’ll have a head start when it comes to launching your second, third and fourth venues.
For businesses who choose to scale in this method, finding the right staff can be the trickiest area. As a business owner, you’re probably used to taking a hands-on role. When you have more than one venue, however, you’ll need to adapt your managerial style. While you can make use of remote management tools, you’ll still need experienced staff you can trust to run the venue.
Providing you can nurture a team of successful staff members and secure an appropriate amount of funding, however, launching another venue could be an effective way to scale your business and increase your profits.
Successfully Growing Your Business
Running a successful commercial organisation is an achievement in itself but that doesn’t mean scaling your business will be plain sailing. Companies that try to grow too quickly can run into problems when their existing structure fails to meet their needs, for example. If you’re unsure whether you can facilitate business growth at this time, take a step back and make sure you’re pursuing the right opportunities.
Although you might be keen to boost your profits as quickly as possible, an accelerated expansion could lead you into difficulties if you’re unprepared. However, there are ways to minimise the risks associated with business growth.
If you require funding, for example, selecting a fairly flexible repayment structure will give you added leeway if issues crop up. Similarly, a detailed expansion plan will ensure you’ve considered every element of the proposed growth and ensured your existing structure can cope with the increased demands. In addition, seeking expert help and advice can ensure you’ve considered every possible option that’s open to you.
By taking these measures, you can choose the right opportunity at the right time and successfully scale your business. In doing so, you’ll secure higher income, increased turnover and bigger profits.