Family Best Time >> Work

Why you should consider growing your business now

Between the years 2015 and 2018, startups created $2.3 trillion in total value worldwide – and these companies are still planning to grow.

When we look at scalable companies, what do we see?

We see a flexible but reliable internal system, competent staff who are not afraid to show initiative and a leader. Getting down to the nitty-gritty, “scalability” is a small word with big implications. Yet 88% of small business owners want to increase their revenue in the coming year. This will mean a thorough examination not only of internal operations, but also of personal standards.

In short, scalability describes a company's ability to grow, upgrade, and adapt quickly to challenges.

Scalable Businesses:

  • Are better able to meet growing market demand
  • Increase profit margins alongside sales
  • Are ready for more customers, more resources and more data

What happens when you're not ready for growth?

Why you should consider growing your business now

Non-scalable businesses aren't hard to spot with a trained eye. These are the businesses that struggle to handle new incoming customers or fail when the workflow slows down. These are the companies with irregular or unpredictable operating costs, poorly structured internal systems both digital and otherwise. These are companies that suffer from a lack of vision, organization and efficiency.

A business is probably not scalable if:

  • Internal systems are not designed or have room to grow
  • Operating costs themselves increase as the business grows
  • There is no business plan or the business plan is not followed leading to a decrease in the quality of work which can eventually drive away clients

Fast-growing small businesses are twice as likely to invest time, money and care in hiring – acutely aware of the power of a good team. Yet 34% haven't even made their first hire yet.

In fact, in very small businesses, progress can be difficult, and many of the same obstacles business leaders face on a daily basis are quite similar to scalability threats. With that, hiring new staff may be the least of his worries.

In very small businesses, some of the biggest challenges are:

  • 50% say they hire new team members
  • 48% say increase profits without increasing overhead
  • 41% report increasing their income
  • 38% say there is a persistent cash flow problem

Now is the time to think about growth – Learn to delegate

So what's holding businesses back? What are the tips for growing your business?

For entrepreneurs who have a small business and big ideas, sometimes it can feel like no one else understands their vision like them. This feeling fuels a reluctance to hire others and perhaps even a distrust of potential recruits.

Regardless of the physical and tangible reasons for stagnation, one of the most common yet often overlooked roadblocks may be right under our noses – a boss-weary decision.

Starting a business with your own hands is never easy (ask any business leader) and in the months and years ahead, the CEO may have to take on the responsibility of an entire team. For many, it's a necessary compromise but one that could eventually become more problematic than it's worth.

See also:How to Grow Small Business

Making the right decisions

Making decisions of any kind requires precious mental energy, and when energy is depleted or focused on small details, bigger ones can fall through the cracks. Decision fatigue leads individuals to:

  • Avoiding and delaying decisions
  • Maintaining a status quo, even threatening positive change
  • Stick to easy and risk-free choices

In the mind of the boss who always does everything himself, scalability is the carrot on the stick that he can't quite reach. Scaling a business starts with fighting decision fatigue, overcoming your own ego, and surrendering power to trusted team members.

Why you should consider growing your business now

For the question of scalability, ask yourself and your company:

  • Are my employees limited by their current responsibilities?
  • Do my employees work independently?
  • Are my customers satisfied with their purchase, their experience, their projects? Are they coming back for more?
  • And finally, can my company's cash reserve sustain a period of growth and increased operating costs?

And, more importantly, do you answer honestly when you ask – Am I trying to do too much on my own as CEO?

In business, scalability begins by looking inward – be mindful of your own non-scalable thinking to encourage unprecedented growth in your operations. This infographic details the steps for scalability, how to manage it as a moving target, and build for the business you want, not the business you have.

Why you should consider growing your business now

Courtesy of brunnerconsultinginc