3 Things You Need To Do Before Scaling Your Startup

Remember the old adage: Don’t run before you can walk.

There will be a time to grow your business, but you shouldn’t rush into any kind of expansion. You will put your business at risk if you do, especially if you spend a fortune when making changes.

So, before you consider any kind of business expansion, focus on the following. We are going to list just a few of the things you need to do before growing your business, so make them a priority before rushing ahead with your plans.

1. Establish customer loyalty.

For starters, you need a steady stream of customers already. If you are currently struggling to make sales, then you should rethink your business strategies before thinking of branching out into new areas. Growing too quickly at this stage could be detrimental to your business. You need to both market your business and find ways to inspire customer confidence, until you have enough customers to make growth a financial reality. 

But even when you do have customers coming to your door, it is important to retain their loyalty. Your competitors will be taking steps to grow their businesses too, so use reward programs and the like to ensure your customers don’t leave you high and dry later on. This way, business growth will become less of a financial risk, as you should still be in receipt of a regular income from customers who are loyal to you. 

2. Speak to your accountant.

By following the previous step, there will be less of a risk to your financial position when spending money to grow your business. However, you still need to ensure growth is a viable proposition. While you might be jumping at the bit to rent bigger premises or to hire new staff, there is much you need to take into account. Will you be able to afford the running costs of a larger building? Will you have the funds to pay not only staff salaries but all of the other benefits that employees expect to receive? 

If you are able to do the maths yourself, then fine. But if not, speak to your accountant and acquire a professional opinion. Your accountant will help you see the bigger picture by making a financial projection. He will then advise you on whether growth is something that could be considered now, or whether it is worth holding fire for a little while longer. 

3. Assess the competition.

Have your competitors expanded before you? If so, what demographics are they targeting? What new services or products are they offering? Assess the actions they have taken and then consider your business plans. There is little point in copying what they have done, as you might struggle to gain new customers. 

As you have always done in business, find your niche, and explore areas of growth that your competitors haven’t thought about taking. And if they have opened up a new or second place of business, be sure to start your commercial property search in an area where they don’t have a foothold if you are thinking about doing the same. 

Business growth is essential for long-term success, but it’s not something to be rushed into. Consider our suggestions then, and only grow your business when you know the time is right to do so. You will reduce the risk of a financial disaster if you do. 

This is a contributed post.