Scaling up a business is more art than science. It takes multiple skills, a strategic approach, and a great team, among other things, to continually push a company to the next level.
There is a lot of literature on this topic, especially amid the rise of bootstrapping in sectors like technology and renewable energies. However, certain fundamental principles are timeless and practical for business owners to quickly implement to move their businesses up the ladder two or more steps.
From the wise use of small business loans to make critical investments to the power of a motivated team, the following article shares six key principles for scaling up a business.
#1 – Build a roadmap and stick with it
For business entrepreneurs, a roadmap is a comprehensive set of actions and steps that need to be taken to achieve the company’s long-term vision.
This roadmap has a start, an end, and multiple intermediate stages. Moreover, it also clarifies the strategies that will be followed to move from one step to the next, so the entrepreneur will always have a compass to guide himself in building the business.
Since it is often easy to get lost in the hassles of the day-to-day operations, drafting a roadmap (and sticking to it) will allow the entrepreneur to keep moving forward in the right direction, despite the constant noise that the business will naturally make.
#2 – Invest what you need to get where you want to go
Negative cash flows are expected and should not bother an entrepreneur during the early stages of the venture. Many investments often have to be made to make sure that things continue to progress as they should, and this is where small business loans came in handy.
With this kind of financial help, entrepreneurs can guarantee that there will be enough resources to keep pushing the business forward. In this regard, cultivating a positive relationship with a lender who believes in the project could become a game-changing factor.
#3 – Cultivate corporate values since the get-go
Corporate values serve as a compass for the team to know what is expected of them and what business they are building. They can typically act as the framework that regulates and explains what the company wants to achieve and how it intends to achieve it.
Suppose your team embodies the culture of your business. In that case, your customers will eventually notice the difference between how you do things and how your competitors do it, which could become a strong and possibly long-lasting competitive advantage.
#4 – Give your team members the credit they deserve
The first years of a growing business are challenging and often time-consuming for everybody involved. The founder will typically devote hours and hours of his time to making sure that everything is getting done as it should and team members will be in charge of executing a big portion of the plan.
Since their contribution is often invaluable, founders should make them feel like such as well. Most companies find that aligning their team’s priorities with the business by giving them an equity stake is an excellent practice. The industry stops being somebody else’s problem. It starts being a collective project that everybody has the responsibility to build to reap the benefits eventually.
#5 – Keep yourself closely connected to your customers
Developing a product or a service without the client’s involvement is kind of like flying blind.
Young companies that want to scale their businesses should remain closely connected to their customers to get feedback. This will allow them to make any necessary fixes fast before they start affecting its credibility and hard-earned reputation.
#6 – Leverage on the power of networking
Networking has been ages the way businesses are built. Even though many have accomplished the arduous task of building a company on their own, such an endeavor will prove unrewarding for many of us. It could condemn a potentially successful company to failure without even giving it a chance.
Find ways to stay near those who have made it and those on track to make it. The first group will help you avoid costly and painful mistakes, while the second will keep you motivated through their accomplishments and victories.
Are you ready to scale your business? What is the area that you struggle the most with? Small business loans can help you secure the resources your company needs to thrive and get to where you want it to go. If you are currently looking for financing, Camino Financial is an excellent place to start. Find out more about them here.