How to grow and scale your business

Growth and scaling are related but different. Growth is simple – it means the historic growth rate of your business. Is it high growth, medium growth or somewhat stagnant? Have you had consistent growth or has it been patchy? Can you identify times of high growth ahead and support that with market data?

Scaling refers to the robustness and repeatability of your processes. Can you readily pump up the volume of your sales? Can you identify new customers that look similar to your existing customers? Can you identify new market segments for your products & services? Do you have new products and services in your development pipeline? Are you able to market to and service your customers using automation where possible?

Growth options

Fast growth is easier to achieve in sectors driven by innovation, and launching new products or services can fuel considerable growth quickly. But most businesses opt for gradual, organic growth that is more manageable and involves less risk. There are a number of well-established strategies:

Sell more to existing customers. This may involve working harder to build relationships and taking on more sales staff.
Attract new customers through increased investment in lead generation and inside sales.
Expand existing sales channels, or create new ones. This might include, for example, developing a new online sales capability.
Enter new markets. Exporting could be an option, selling beyond your region or aiming your offer at an entirely new set of customers. This may also involve opening up new outlets.
Introducing new products or services to your marketplace can give you an instant edge – providing you have researched your market thoroughly and have a clear product strategy.
Introduce new technology to your business. Better systems and equipment will increase your capacity and have the potential to free up staff time if used effectively.
Create partnerships with other businesses. Sharing resources and expertise with another business will enable you both of you to flourish without overstretching yourselves. It can also open the door to public sector contracts.
Successfully tendering for contracts can stimulate the sort of growth that takes your business to a new level. As you increase your resources, you will be in a better position to win more contracts.
Networking can introduce you to potential customers, business partners, investors and mentors.

The implications of business growth

A larger firm is likely to be more complex, demanding and time-consuming. It will probably require greater commitment; and you are likely to have to spend more time doing things you don’t really enjoy, such as financial planning.

You will probably also have to concede some responsibility or control to others and invest in greater resources, such as larger premises, more plant & equipment, and more employees. As the business grows, your costs and management burdens will increase. So it requires a genuine commitment.

When to expand your business?

Don’t make the mistake of attempting to grow too soon. It’s better to wait until you have a period of successful trading behind you to provide evidence that your business model works. This, perhaps along with some basic market data, will also tell you whether there is enough demand to justify expansion and give you time to put the systems in place to cope with an increase in scale.

Working to a development strategy will help you measure your progress. It should set out your methods, costs, targets and a realistic schedule and you should revise your business plan to incorporate these growth strategies.

Now, properly equipped with a plan, a set of strategies and the right resources to execute, growth becomes a sustainable, manageable part of your business operations.