To build a long-lasting business, it’s crucial to understand how to scale your business correctly. Scott Crockett, founder of Everest Business Funding, says that there are many different factors that go into this, but making sure you’re prepared for how best to scale is essential no matter what industry you’re in.
It’s always best to have a solid growth plan in place to prepare you for every new challenge expansion brings. Below are some tips on how to scale your company successfully.
Invest in Technology
Technology can be expensive, but it can also save you a load of money in the long run. The right technology will also make it simpler and cheaper to scale your business.
Not all technology is worth it for every business, but every business certainly can use the proper technology to its advantage. Whether it’s an inventory system, basic CRM, shipping systems, or communication tools, it’s essential to figure out which tech tools can help you the most and then invest in them.
Build a Strong Team
Every entrepreneur needs a strong team to support them. Even if you’re launching the business as a solo operation, you’re eventually going to need people you can trust by your side as you scale and expand.
Take the time to find the right people for the right job. This all starts with extensive recruiting and offering a solid package of salary and benefits to attract and retain top talent.
Once you’ve built an inner circle of people you can trust the most, then you can have them branch out and hire people to help them in their departments. It’s important not to grow your team too quickly — or too slowly — as it can be very damaging to your bottom line.
Improve Marketing Efforts
It’s difficult to scale a business if you don’t build a solid brand. This is important for any business at any stage but particularly important when you’re looking to expand.
Improving your marketing efforts doesn’t just mean increasing your marketing spend, though. It means strategically focusing on the areas where you’re likely to see the biggest bang for your buck and the best response right away.
You’ll only be able to do this if you do the proper research into your target market, your competition, and your potential message before you launch a new plan.
Prepare for Challenges
Scott Crockett says there will always be unexpected challenges that pop up as you’re expanding your business. While you may not be able to plan for which specific challenges you might face, you do need to assume that you’ll at least face some sort of challenge.
One of the best ways to do this is to make sure you’re properly capitalized to scale. You’ll need to have a “rainy day fund,” with sufficient money set aside for the express purpose of paying the basic bills should times get tough.
Many businesses fail as they attempt to scale simply because they don’t have enough cash on hand to weather the storm. Don’t let that be the reason your business didn’t last. You don’t want a planned expansion to turn into your undoing.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.