When looking at scaling your business it really centres on your strategy and mindset. The question that needs to be asked is, why you want to scale your business and where you want to be? Firstly, you need to have a passion in your business. Scaling requires you to be flexible and to control your mindset. To see problems and obstacles you face as a challenge.
Scaling requires flexibility and problem solving so you can overcome obstacles that you are sure to meet.
“Life can be a rocky road. The challenge is not to let it grind you to dust but polish you into a brilliant gem”. John Milton Fogg
To achieve scale in your business you need to have passion and a growth mindset in your business.
There are three mindset levels in business
- Survival – you are just surviving in your business but not really getting ahead, living day today, hoping to make through this month or this year.
- Success – Your business has now been growing but you realise it is now time to take your business to the next level in your field of business
- A Significant Business- You have now moved the next level in business. You have not only seen growth in revenue but have been able to scale your business so that it is more profitable, and overheads have been scaled back. You are recognised as an industry leader by your customers and your competitors.
Take Advantage of Technology in Scaling Your Business
Scaling your business successfully is about efficiency, the ability to increase your revenue but not increase your costs. Using the latest technology to perform certain tasks in your business will make scaling easier and more profitable.
- Take advantage of Digital Marketing to acquire new customers
- Customer Relationship Management (CRM)
- Using email and social media for lead generation
- Using cloud software to streamline your business operations
- Inventory Management Technology for your warehouse to save time and labour
- Convert your old phone system to a cloud based system.
There are many more examples of technology that allows massive jumps in productivity after a simple one-off expense.
Understand the Numbers in Your Business
Start by digging into your business figures so you know whether you are doing it successfully. Here are some numbers to look at and consider.
Customer Acquisition Cost (CAC)
This is as it says, the total cost of labour and materials to acquire one customer. In looking at scaling you need to see how you can lower your customer acquisition cost (CAC)
Lifetime Customer Value (LCV)
The total value of a customer over their lifetime. In scaling your business you need to focus on increasing your LCV as you scale.
Here you are going to measure the rate of growth of revenue or customer base month by month setting high goals and budgets to meet during the scaling.
Comparing the number of successful sales to the number of leads and prospects. The aim in scaling is to get the conversion rate as high as possible.
Retain Existing Customers
In scaling up it is important not to take your focus off your existing customers. Customer retention is as important as gaining new customers.
Offering a WOW service and exceeding expectations is the way to keep customers coming back. Achieving this can also assist in reducing your customer acquisition cost (CAC) as there is no better marketing tool than a happy customer telling others. Listen to your customers so you know what they want. Do your research and conduct customer surveys.
Scaling up can be a daunting process especially if you do not have the right resources or systems in your business to support that kind of growth. Research shows that 9 in 10 new businesses fail in the early years and only 40% make a profit. Your business can overcome this by doing your homework, controlling your costs and streamlining your business operations.
Lets Talk about you.
If you would like an obligation free 45-minute meeting with John and his team about scaling or managing your business for better results call 1300 727 082 or email us here.