Expansion is the key component of any successful business. However,
expanding can entail growing pains for a business. Every entrepreneur
wants to turn their small business into a large behemoth. But how does
one go about it? The strategies used to scale a business can make it
or break it.
All business owners know the importance of having a
vision for their business, being focused on customers, putting an
effective team in place, and ensuring that everyone in the team is
disciplined.
While these are building blocks of any business,
there are certainly other components that entrepreneurs should
consider as well.
In this article, we’ll cover 10 key aspects of how to grow a business that shouldn’t be overlooked.
1. Understanding your Target Customer Base
The first answer to how to grow a business is to understand your
customers. Your business should solve a real problem or issue that
your target customers face. If your service or product can save money
or time, then there is a good chance that you have an offer that
works.
Some of the questions that you should ask yourself to
scale up your business:
- Who are my customers?
- What do they need?
- Why should they buy what I have to offer?
- How are they going to buy?
Once you have informed answers to these questions, you’ll be ready to start scaling your business.
2. Building a Competitive Edge
Every business needs a competitive edge. What is it that makes a
customer buy from you and not your competitor? A business owner needs
to have a ready answer to this question.
For example, if you’re
running a restaurant in Kolkata, your competitive edge could be that
you offer rooftop dining services that other restaurants in the area
do not offer.
You may not have an answer to this question right
away. However, as you become more experienced and you have been
running your business for a few years and are more familiar with your
customers and your product, you may arrive at an answer for what
differentiates your business from others.
3. Focusing on Sales
In order to successfully scale your business, sales need to be a
top priority. How are you going to ensure steady and ever-growing
revenue for your business? The sales strategy can make or break a
business.
While making a sales strategy, spend some time
considering the various ways that you can reach your prospects and
convert them into loyal customers. Are you going to hire door-to-door
salesmen? Are you going to sell on Amazon or Flipkart? Are you going
to set up physical stores in big malls?
4. Implementing a Marketing Machine
The most tried and true way to scale your business is to ramp up
your marketing game. Marketing allows you to create brand and product
awareness. Customers will not buy from you if they don’t know that you
exist. Gone are the days when it was enough for a company to run a few
ads in print or radio. Nowadays, marketing campaigns have become
increasingly sophisticated.
You may need to try out a few
strategies before you stumble upon one that works, but when you find
it, it can be a gamechanger for your company. While you’re
experimenting with marketing campaigns, you can use an SME Business Loan to meet
your costs.
Also Read :- Know the Pros & Cons of a Long-Term Business Loan
5. Outsourcing
You don’t need to hire in-house staff to take care of all your
business needs. You can outsource certain aspects. This can be
beneficial since you don’t have to train your staff and also lead to
savings since outsourcing can be more cost-effective.
For
example, you can hire an independent accountant to take care of all
your accounting needs and taxes.
6. Using Automation
Nowadays, you can automate several aspects of your business’s
internal operations. You can automate your social media campaigns, you
can automate your email marketing, you can automate your project
management, and so on.
Relying on automation not only helps you
reduce costs, but also helps you avoid manual or human error. You can
always pick and choose which aspects of your business will best be
automated.
7. Implementing Standardized Internal Processes
The next step is to start standardizing your internal processes
and implement efficient workflows. For example, if you run a
restaurant, then you can purchase all ingredients of the week at 5
AM on Tuesday every week.
Rather than “winging it”, you can be
more deliberate with how your business operates. A standardized
operating procedure makes it easier for your staff to handle their
workload as well.
8. Leveraging the Latest Technology
Digital transformation is not just meant for large Fortune 500
companies, but for small businesses as well. Gone are the days when
most of the work happened on paper. Every business needs to upgrade
its operations so that they can be conducted on smartphones or
laptops.
While this can seem costly upfront, it saves a lot over
the long term and is much more efficient. Software is available for
almost every aspect of running a business, and you should be the first
to leverage it. If you want to use the latest IT developments to grow
your business but don’t have the necessary funds, consider opting for
an SME Business
Loan to help with expansion.
9. Honing Diverse Skillsets
As an entrepreneur, it is important to build a team with a diverse set of skills. In fact, the goal of every business owner is to hire people who are smarter than they are. Nurturing talent will help you scale your business faster than any other factor. People with diverse skillsets can add value to your company and pay for themselves many times over. When hiring people, invest in their training and development so that you can get the best out of them.
10. Collaborating and Networking
A business cannot survive on its own. As they say, “it takes a
village to raise a child”. The same can be said for a business. You
need to have a network of service providers, suppliers, sales
partners, collaborators, freelancers, and so on.
The sooner you
start building up your network (with a purpose in mind), the sooner
you can start reaping the benefits.
Wrapping Up
When you’re just starting, it can be overwhelming to figure out how to grow your business. Scaling is probably the most fun aspect of any business. Even though the journey can be hard, the results are worth it. If you require funding for scaling any aspect of your business, you can always consider opting for an SME Business Loan.
FAQs
- How can I scale my business in India?
To scale or expand your business idea, you need to expand its operations, customer base, and revenue. At the same time, you will need to maintain efficiency and profitability. Here are some steps to follow:
- Validate your idea: Make sure that your business idea has a strong demand in the market. You must ensure that the customers are willing to pay to use the products and services you are going to offer.
- Build a scalable infrastructure: This includes technology, production processes, supply chain, etc.
- Hire skilled personnel: Bring a competent workforce that can help accelerate your business growth.
- Secure adequate funding: Evaluate your funding needs and look for various options to get funds from, such as availing yourself of a Business Loan for expansion.
- Focus on customer Acquisition: Focus on acquiring new consumers and retaining them.
- Seek professional advice: Get guidance from mentors and business consultants to chart the best course for your business.
