Even though some people think “scaling up” is just a buzzword, it’s a necessary step that growing startups have to take.
Maintaining a growing business is about much more than increasing sales and revenue. As companies grow in size and scope, it goes without saying it’s not without complications. The good news is that it’s likely the scaling challenges your company is facing aren’t unique to you and your business. By understanding what the common scaling challenges are, you can start to recognise patterns and avoid the issues most founders face as they grow their startups. Implementing solutions like a fleet tracking device for example is one of the many ways you can secure a safe scaling.
It’s only natural for entrepreneurs to have big ambitions when they start any new business venture. But if you don’t have a road map in place to handle rapid growth, you could become a victim of your own success.
Here are some tips to make sure you get the best out of scaling your business.
1. Strategise how to increase sales
The first thing you need to consider when scaling is increasing sales. This means either adding new customers or growing the average revenue from current customers. But while both options drive results, expanding your relationship with current customers is often more cost-effective than attracting new business. On average, getting a new customer can cost 5-6 times more than keeping and engaging customers you already have. This is a worthwhile investment that doesn’t break the bank, and a strategy you should be taking advantage of the most.
2. Organise a competent team
It goes without saying you cannot singlehandedly scale your venture alone. You need a team of talented, highly motivated staff who believe in the company’s mission. For resource-constrained startups, the right talent can change everything: High performers are 400 percent more productive than the average employee, according to McKinsey. As roles grow in complexity, that productivity number jumps to 800 percent. When a company is in a rapid growth phase, it often feels easier to hire anyone who can get the work done.
3. Make sure your tech is up-to-date
Whether you have your own IT team or have an outsourced solution, they have to be heavily involved in any scaling program. As you’re scaling, you can’t afford downtime or glitches when you’re opening new offices or onboarding a big group of new employees. Using cloud solutions can take some of the burden off of your in-house IT team, since your provider is responsible for the software, and allow them to focus on supporting your employees instead of a bunch of different apps and tools.
Incorporating advanced telematics and fleet tracking technology can also significantly enhance operational efficiency, particularly for businesses with a mobile workforce. Fleet tracking allows you to monitor vehicle locations, optimize routes, and improve fuel efficiency, which can lead to substantial cost savings and better service delivery. Ensuring your fleet management technology is up-to-date will enable you to leverage real-time data for smarter decision-making and maintain a competitive edge in your industry.
4. Don’t be afraid to outsource
During the early stages of business growth, many organisations have a handful of core team members who wear multiple hats. However, in the long run, expecting every team member to be a high-performing generalist can lead to costly errors and burnout. As you scale your business, consider outsourcing or bringing in skilled specialists to improve efficiency and drive outcomes. Engaging specialised talent might sound costly and challenging to scale, which can be the case with full-time workers if they aren’t yet needed full time. But this is a strategic move that will benefit you longer in long term and is best implemented as early as you can.
5. Revisit your organisational structure
How you structure your organisation is crucial to its success. As the company grows, so, too, should the number of its decision-makers. The founders can’t be involved in every detail of the business once it scales, but it’s important to recruit seasoned leaders with specific skill sets or develop employees who can thrive in environments with more specialized roles. Training new employees can feel like additional work, but taking the time to properly onboard them pays dividends later. It’s all about creating leverage to deliver on the founders’ vision that requires not only recruiting the right people, but structuring their roles and the organization in ways that favor growth.
Scaling a business means building a clear strategy that outlines key milestones one, five, and 10 years down the line and beyond. It also means aligning your short-term goals with your long-term goals, so you scale at a manageable pace. By keeping the big picture and your company vision in focus and building the right team, your business will be in a strong position to scale successfully.
