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Growing a business is hard, period. I lived through a few rounds and wrote a book about it. Inevitable revolutionsHoping to share my experience with others. Before you go into full scaling mode for your business, you need to be as consistent with your finances as you were in your initial startup phase.
Business scale is a key component to success and longevity. Businesses are investments, so making wise business decisions is essential to growing your technology business. Technology startup costs can be high. Scaling your business costs your company, so it’s important that you’re prepared to take the investment. But with the right tools, ideas, and strategies, you’ll see returns as the scale encounters fewer obstacles and unexpected bumps in the road.
So, if your business is ready to scale and you have the budget to proceed, you’re probably wondering how to make it happen, right? Read on to learn five dos and don’ts for growing your business on a budget:
Related: 5 Mistakes to Avoid When Starting or Growing a Business
1. Create a structure
Before you can scale your business, it’s important to create management/staff structures. Aim to keep teams small so managers don’t get overwhelmed and employees feel heard and valued. Having multiple managers reporting to you can seem like a pain, but it helps everyone do their jobs more effectively. It also teaches your employees how to communicate better and solve problems faster.
You also need to learn how to be a great leader in order for your startup to scale effectively. Practice actively listening, testing, and being transparent with your employees.
2. Blow the brakes
If now doesn’t seem like the right time to scale your business, turn off the breaks. Catch breaks don’t mean balancing your business won’t pay off. It means you may need more time to get important elements like marketing and customer relations in order.
3. Develop pride
Give your team something to cheer about when the company meets milestones and departmental goals. Attract everyone to a cause and instill pride in your organization. When your employees feel a sense of trust and security, they are more likely to be creative and come up with new solutions.
4. Manage your finances
Before you scale your business, assess your current financial situation. See your expenses, profits and your bottom line. Scaling your business costs money in some way, so you want to make sure it’s invested wisely. You also want to make sure your operating costs are manageable. Start by gathering a list of all possible operating expenses to determine how much capital or budget you need.
Then think about whether you need more capital or if it is enough to save on your profit margin. Also determine your risk tolerance level. If the budget seems tight, don’t hesitate to go back to the drawing board or wait until your finances are healthy.
Related: 15 Ways to Scale Your Business and Make More Money
5. Achieve your goals first
One of the most important signs that it’s time to grow is when you meet your initial business goals. For example, you’ve reached a certain profit margin, achieved a certain amount of sales, or hired a certain number of employees.
Once these goals are met, consider scaling up your business. Expanding your business before these goals are achieved can lead to a lot of confusion about what to do next.
6. Don’t live in the past
When businesses operate the way they’ve always been done, innovation suffers. Don’t be afraid to abandon business processes if they don’t seem to belong to your organization in the past. You can also outsource non-essential duties to other companies to ensure your business has more time to focus on scale.
7. Don’t ignore your limitations
Ignoring your limits can seriously hurt your business. In fact, ignoring limitations can cause your business to fail. That’s what happens to 74% of tech startups that decide to scale up before it’s time. Some constraints to consider include your capital, your current computer systems, and how many employees you have.
8. Don’t focus on IT
Tech companies know all about IT – but is your IT system ready to scale right now? Before you go full speed ahead, familiarize yourself with the capabilities of your IT system.
Before you scale, make sure your servers, CRM systems, and all other computing systems are ready to handle business activity. Keep in mind, though, that automation may be necessary to streamline different systems. Assessing the missing links and optimizing these pathways will be critical to addressing them early.
Related: 3 Proven Ways to Grow Your Business Without a Lot of Money
9. Don’t hire in a pinch
Take your time and hire the best people for your company. Don’t feel pressured to hire more people just because you have a vision for growth. Hiring more people can be a sign of slowing down to avoid investing more resources. Simplification is a process. It’s better to have the right people to support your business expansion than to have semi-qualified employees trying to do their jobs.
10. Do not give up hope
Optimism is a great quality, but in business, you also have to be realistic. Avoid being overly enthusiastic about an idea or strategy without researching it thoroughly and trying it out first. There’s no rush, and you’ll be happy to look at several strategies instead of settling on the first one that sounds like a good idea.
Be optimistic, but don’t be complacent about choosing the best strategy to scale your business. Sometimes the best strategy is not to scale until you are fully prepared to take on additional responsibilities.
Scale your business when your business, employees and systems are ready for it. Time to grow your business is everything. The right timing means your business is ready and able to handle a surge in growth. So grow your business in the right way at the right time.
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