Eight ‘Rules’ For Safely And Smartly Scaling Your Business

When an entrepreneur first starts out, he or she goes through a lot of trial and error. In an effort to grow and expand their business, they often experiment with different ideas to see what works and what doesn’t. However, scaling a business is not easy, and without prior experience, mistakes can be made.

While not every project will be successful, there are ways to effectively scale your business while reducing risk. To that end, a panel of Young Entrepreneurs Council members shared the tips they wanted to know when they first started scaling businesses safely and intelligently.

1. Top-down and bottom-up recruitment at the same time

With our first startup, we were very focused on growing our team from the bottom up with ‘doers’ and tried to wear all our executive hats as founders. With our second and third businesses, we’ve prioritized top-down and bottom-up hiring at the same time, which means we’re hiring earlier CEOs and leaders to manage the “actors” in their teams. This hiring strategy allows us to scale faster and makes our team stronger and more inclusive from the start. We are able to present ourselves to clients and investors as a company that outlasts our weight, generating confidence in our company, our products and our business. It also creates more opportunities for the people on your team to see how they can rise within the organization, which helps with talent retention. – Swapnil Shinde, Zeni Inc.

2. Avoid aiming too high

Hindsight is great, and there’s a lot I would have done a little differently if I had another chance. Expanding your business is an especially risky endeavor, and many of us (as ambitious as we are) make the mistake of aiming for slightly higher goals from the start. Your business growth can only be successful if you have the means to support it. I wish I knew how much planning it takes to achieve a successful expansion. It is very important to take a close look at your work and be realistic about where you compare to where you want to be. Be realistic and work with what you have. One of the best ways to do this is to work with numbers. What does your sales forecast look like? How can it be improved? Start small and then work your way up. – Nick Venditi, StitchGolf

3. Managing people by metrics

I quickly expanded my company and hired desperate jobs. I didn’t set key performance indicators (KPIs) for each role, which caused a drop in execution. When my office staff was thrilled, I didn’t make data-driven decisions because I didn’t have clear metrics. Now I’m hiring based on clear metrics and we’ve developed a hiring process. My Operations Manager is skill-qualified and I am culture-qualified. Then, during the onboarding process, the leading indicators show me whether the new employee needs more support, is on the right track or needs replacement. Looking back before we expanded the company, I wish I could focus more on management and performance-related metrics. – Libby Rothschild, dietitian

4. Determining work capabilities

Estimate how much extra work your employees will have to do with more clients, and what is a reasonable amount to add to their monthly workload. When you expand, and work for a service company, you still have to offer the same quality to a larger group of customers. Adding too many customers can impair quality. Gifted individuals can become fatigued when they are given more work than they can handle, which can severely reduce their productivity. Low productivity means lower quality of work and dissatisfied customers who will take their business elsewhere. It’s easy to make a mistake, but when you have a team that feels comfortable giving that feedback, then you can scale accordingly. Determine business capabilities before adding new clients. – Medial rotation, Optimum7

5. Work before you commit

Indulge yourself in anything before you fully commit to it. Whether you’re trying a new type of recruiting or marketing channel, start small, figure out what works, and then expand. A good example of this is choosing where to spend your marketing money. A bunch of platforms and salespeople will try to convince you to spend a bunch of money. not do. Score something small to see if it will work for you, and then, based on the results, go from there. Hiring a new designer? Start by designing one of them. If you like them, you can bring them in for more work. You should be careful not to overburden yourself, especially when it comes to hiring. Once you bring people in, you are responsible for them, so make sure you can take care of them. – Andy Croza Base64.ai

6. Find out the best time of the year to measure

The first step to how to safely scale your business is to determine the best time of the year to do so. This isn’t something many companies think about, but it can have a profound impact. For example, you should avoid bringing in more people or expanding your products during the holiday season only when your product sales are high. You won’t have the time or free hands needed to hire new employees, and you’ll remove the focus from making sure deals come out on time or that your customer support is in the works. Choosing a slow season to scale is smarter and safer as you’ll be able to take the time to help new people join in, and you can troubleshoot and troubleshoot issues that come with launching a new product. – Syed Balkhi, WPBeginner

7. Connect with mentors

To properly scale your business, don’t be afraid to reach out to mentors and other entrepreneurs for their advice. It can be difficult to scale your business for the first time and figuring out the exact steps that need to be taken in order for it to grow successfully across the board. Expert advice can put you on the right track so that it is easier for you to feel confident about your decisions and strategies. – Stephanie Wells, awesome shapes

8. Talk to a financial expert

The idea of ​​expansion may seem like an attractive proposition; However, it is important to remember that your costs increase as you grow. Don’t just hope that your expansion plans will immediately increase revenue. You need to be prepared to pay your expenses in case you don’t see the cash flow you expect. Before you even consider taking on debt, talk to finance professionals. They can help you find ways for your business to fund your growth strategies in a sustainable way. You can also scale your business incrementally instead of doing it all at once. Bring in a few new people at a time. Increase your lead generation by a small degree. Test to see how your efforts go before you commit to them. – Blair Williams, MemberPress


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