How to scale your business with minimal effort
If you want your business to grow, at some point you’ll have to think about scaling it. Scaling it isn’t exactly the same as growing it, though they are often used interchangeably. Growth refers to adding resources and increasing your revenue in a linear fashion. You double your number of offices to double your number of customers, for example. Scaling means increasing your revenue without a substantial increase in the resources used.
For example, email marketing is a great way to scale. You write one marketing email and it can be seen by 100 people or 100,000 people, without any extra effort from you. Scaling is a way of efficiently using your resources to increase revenue, without incurring additional costs—or only incremental costs.
Here are some tips to effectively scale your business with minimal effort.
1. Keep it simple
Processes that are overly complex take more time and energy. They also come with a higher risk of errors. Scaling your business doesn’t have to be complex—in fact, complexity can often slow progress and waste your time.
Keep your processes simple. That will help you not only maintain control of your business, but enable your employees and your customers to understand what you do and to buy in.
If it seems too complicated, avoid it.
2. Use scalable administrative processes
Scalable processes allow you to operate efficiently because they enable you to take action quickly, with less effort and input. Technology makes it easier for companies to access software that increases productivity and revenues while decreasing time spent on administrative tasks.
For example, having an online invoicing tool helps you scale because you can quickly create invoices, follow up with clients and track project management, without having to do so manually. That saves you time and energy that can be better spent in other areas. Meanwhile, marketing automation tools can bring in an additional $50,000 a year but only cost around $5,000 a year.
Examine the activities you perform regularly and explore whether there’s a tool that could automate them.
3. Focus on data
Don’t speculate about what is and isn’t working in your business, use data to determine where you should spend money, and where you should stop. Business owners have access to a wealth of data-driving metrics, everything from how customers interact with your website to which marketing initiatives are working, to how long it takes to convert customers.
Use that information to make effective spending and operational decisions, rather than guessing at what is and isn’t working.
4. Scale your offerings
Chances are, you can scale your offerings to encourage repeat customers. Automatic renewals or subscriptions can increase customer retention rates without you putting in the effort of chasing people down. Rewards programs nurture customer loyalty.
Explore whether you can offer repeatable pricing packages as well. Even if you offer professional services, selling packages saves you from manually quoting on every individual project. There is likely a way that you can implement subscriptions or service packages to save you time and hassle.
Scaling your business is an important way to increase revenue without significantly increasing your expenses. If you automate your processes, scale your offerings, focus on data and keep your systems simple, you can scale your business effectively and efficiently. We can help you focus on the financial data of your business, from debtors ageing to ratio analysis such as liquidity (current, acid test), leverage (debt to equity, interest coverage), efficiency and profitability ratios. Give us a call on 1300 787 443 for your free consultation.