Running a small business is surely an actual headache, but you know what’s the toughest? The process of scaling it up to the next level. That's a whole different battle to conquer! The dream is to build something that can keep expanding and taking on more customers/clients without hitting a ceiling for you. Sounds awesome, right? To us, it does.
Well, it's totally possible if you get the model right from the start. Don't worry, I'm not going to bombard you with complicated business jargon but these are just 10 down-to-earth tips for setting your business up to be scalable, with minimum fuss and maximum efficiency:
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Start Lean - When you're just starting out, it's tempting to go all out. Hire a bunch of employees, get a fancy office, load up on equipment and supplies. Don't go overboard with a ton of employees, equipment, office space, etc right out of the gate. Start lean and increase resources as you grow. As your business grows and you start bringing in more income, that's when you can gradually add more resources and headcount.
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Systematize Everything - Document all your processes, procedures, workflows. Having systems in place lets you seamlessly bring on new staff as needed. Trust me, having transparent step-by-step systems in place for every aspect of your operations makes it SO much easier to bring new people on board as you grow.
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Utilize Technology - Use all the latest software, apps, automations to streamline and make operations more efficient. Technology is your friend! Being scared to invest in tech that'll save you time and money would be a dumb thing to do.
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Outsource Non-Core Work - Why pay employees to do administrative tasks? If you want to focus on your core business, you have to outsource the other things. Instead of paying employees to do tasks that aren’t your top priorities, get freelancers or agencies that specialize in those areas to get the job done.
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Create Passive Revenue - Are you sure that you are generating income in certain ways that isn’t directly trading your time for money? Passive revenue can drive serious growth for you. Any way you can package up your expertise or offerings to generate revenue without active effort is going to be a total win.
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Ditch Inventory - If your product is digital or service-based, even better! No dealing with inventory management, warehousing costs, shipping logistics, etc.. Selling something that doesn't require manufacturing or storage? You're already on the scalability fast track.
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Price for Profit - Don't leave money on the table. From day one, price your products or services in a way that maximizes your profit margins and gives you plenty of capital to reinvest in expansion. So that it doesn’t bite you when it's time to scale up operations.
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Seek Recurring Revenue - Recurring subscription-based revenue models are a beautiful, beautiful thing for scalability compared to just one-off purchases or project fees. If you have a steady, predictable stream of income from subscribers or members makes it so much easier to budget, forecast, and invest
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Hire Superstars - As you grow, build a team of A-players with an owner's mindset. Don't settle for any less! Mediocre employees will just become headaches if you don’t get the right core team in place from early on that can truly share the vision and workload
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Stay Flexible - Processes that worked at first may eventually hold you back. The processes and approaches that made sense when you were just starting out won't necessarily work forever as you scale up to new heights. You'll need to continuously evaluate, get outside perspectives, and be willing to adapt your business models and operations. Rigidity and stubbornness are dream killers for any entrepreneur
The key thing is baking scalability into your business DNA from day one. It's not easy, but man, going from a small startup to a huge success sure is rewarding! You'll be primed to take those early humble beginnings and turn them into something huge. It'll take hard work, no doubt, but that potential for scalability? That's what opens up a world of possibility for the future.