What is Scaling Strategy? How and When to Scale your business?
We all reach a point in our business where the momentum is slow or not at the expected speed. The general idea that every entrepreneur would apply here is to grow their business. The most common approach to growing a business is to add more resources and invest more money in handling and maintaining that growth. This does not really guarantee you long-term growth, it is rather just temporary. Scaling your business means long-term growth and revenue, without any major halts. Let us understand the Scaling strategy.
What does Scaling your business mean?
As we discussed above, growth does not mean temporary sales, in the same manner, Scaling is the upper-value point where your growth is neither adamant nor it is temporary, or rather dependent on excessive funds or resources. Scaling a business means continuous growth, major or minor yet not a temporary one. If your business is scaling well, then you do not have to add more funds or resources to maintain that growth, there won’t be major halts, this is the reason why Scaling a business is the toughest thing to do for Entrepreneurs.
Why is Scaling your Business Important?
There are always various reasons why you should opt for a certain strategy. The same goes for the Scaling strategy, remember we are in this business to have continuous growth and earn the basic reward, that is Profit. Scaling your business can help you to achieve that growth and fulfill the desired goals.
1. Helps you become more efficient
Once your business is scaling to a particular extent, it would also increase your capacity to take the pressure. By pressure what it means is to handle the load, the increased sales, availability of the resources, the increased working capital, and the better performance as expected. Hence, this would help you become more efficient.
For a business to grow, it needs to adapt quickly to changing nature and demands of the people. However, if you do not possess the ability to adapt quicker, it may affect you in the longer run. By scaling your business, you become more adaptable to any situation.
3. Being Consistent in the Long run
Every business yearns to become consistent with their growth, and with their performance as a whole. While implementing the scaling strategy, it helps you become more consistent with your efforts, and your ability to handle the pressure that is required. Not just that, it also ensures that you would be able to survive in the long run.
4. Overcome your Competitors
As a start-up or as an existing business owner, the major challenge is to stand against your competitor, that decide the most percentage of whether you would survive the game or fall. Yet, if you are scaling your business and making good profits you won’t just be standing and competing but totally overcoming your Competitors.
How and When to Scale your Business?
It may be easy to understand how to scale your business, but another crucial aspect is to understand ‘When’ to scale. Timing is always the most significant factor while making any move, or any strategy. Let us have a look at the How’s and When’s of the Scaling strategy.
1. Planning and Analyzing
Before making any major decision you need to always plan and analyze the current scenario of your business. In the same manner, before actually trying to scale your business you need to plan and analyze if your business has the capacity to handle the situation that would arise? As in, let’s say the scaling of your business led to a sale of 100 or even more than that, do you have enough resources to manage that with the same or greater performance, and delivery?
You need to maintain the necessary preparations before actually implementing the scaling strategy. Analyzing would also help you to decide the perfect timing for your strategy, hence answering the question, ‘When?’
2. Resources and Funds
For a successful Scaling strategy, you do not have to just invest your time, but also the necessary resources and the funds that would be required during the phase. You need to ensure that you have enough stock, enough manpower that would be able to handle the situation in case of an unexpected number of sales. One of the significant points to ensure is that you never run out of stock while handling the scaling phase, however, be careful with the funds that you spend on the resources.
3. Marketing Campaigns and promotions
Scaling your business is just a strategy or a phase, it is not a promotional tool. It is the phase where you need to give your all to reach the 100% growth rate. However, in order to make sure that you reach enough customers and make enough sales you need to do Market research and prepare your campaigns accordingly. You would need various promoters and various promotional tools for getting enough sales.
4. Creating your ‘Street Team’
By the term ‘Street Team’ it means making a team of individuals who hold expertise in product, marketing, and so on. You can create your own team, that would assist you in the phase of Scaling your business. Remember, it is always difficult to handle all the things by yourself, hence you should always have a team to guide and support you.
5. Investing in Social Media and Tech
You need huge amounts of sales to make your scaling strategy work, however, for that, you would also need exposure and valuable marketing. One of the best ways is to invest in technology and use Social media advertisements, Google SEO words, blogging, and so on. This would help you to get more reach and drive enough sales for your business that would help you achieve more results, rather than just receiving a short-term spike in your growth rate.
Scaling your business is a very crucial strategy for every business. However, you need to make sure that you have all the necessary preparations and the capacity to handle the phase. A Few of the effective ways to scale your business are to Plan and Analyze, ensuring enough resources and funds, Good Marketing campaigns and promotions, creating a professional team, and investing in technology.