🔊 If your business strategy doesn’t involve scale, be prepared to fail 🔊
But when it comes to scaling your business, what does the word scale mean?
I always talk about taking a holistic approach to business. That is no different when it comes to scaling your business. Scaling your business is not just about getting new customers, so it’s important to get specific. When working with customers, I break it down to 2 areas. Within that, there are multiple mechanisms to achieve growth. And within those mechanisms, there are multiple pathways you can work with.
Looking Outward
1. New Customers
This is usually the ‘GoTo’ mechanism people look to when scaling, but it’s not the only 1 and it can get saturated quickly. This can leave businesses stuck while piling pressure on the sales team. That’s not to say you shouldn’t look at it, it absolutely should be a key element of any strategy. Just don’t rely on it solely, as once it does get saturated you need to think bigger.
2. New Demographics
When your marketplace gets saturated, new demographics should be a consideration when looking to scale your business. However, be mindful of the pitfalls. Your business must be running like a steam train before you consider this. Should you have underlying issues, remember they can scale with you and become business-critical.
3. New Products / Services
Is there a gap in your marketplace that you would like to fulfill? Or is there an area that you would like to enter as it compliments your overall service? Within this, you have a few choices. Either develop your product/service or acquire it. Big questions need to be answered here as this is a bold strategy and definitely not a short-term one. This involves an element of market domination.
Looking Inward
1. New business with existing Clients
Looking inward should always be the 1st element in scaling your business and securing it for the future. What else can you serve them with? Can you add more sales cycles? There are many drivers, which I’ve talked about before.
2. Reduce Costs
When scaling your business, the goal is to generate more profits right? So do that by reducing your cost of service. Sounds simple but this takes effort. It will be an effort well spent.
3. Reduce Lead Times
This works hand in hand with reducing costs. As when you reduce lead times, you invoice quicker and get paid quicker. This scales your working capital/cash flow.
And when you combine multiple Inward mechanisms when scaling your business you can be very smart.
For example:
When reducing costs, by definition, you create capacity in your business. So what should you do? Fill it with more business. As of now you have scaled your business without scaling your cost. All this without having to look outward. This should be PHASE 1 of any strategy when scaling your business.
I hope this helps, If you have any questions, please get in touch
