21 Nov Video: Scaling Up Successfully
Scaling up your business in an opportunistic and unstructured way can significantly reduce the chances of achieving your growth aspirations. There are guiding principles that when followed, will greatly increase your chances of success. In our latest video, Tim Marshall, Chief Operating Officer and Risk Director for Pay4, provides a brief guide to the foundation required to enhance your chances of scaling up successfully.
Understanding and exploiting the opportunity
As Tim explains, key to achieving sustainable growth and scaling up successfully is fully researching and understanding your market opportunity. Getting to grips with where any gaps in the market lie, what the size of this market opportunity may be, its geographies, and how you will differentiate your business from your main competitors will enable you to plan your approach in an informed, considered and consistent manner.
Assessing your business and understanding your strengths and weaknesses will help you to exploit the opportunities you have identified. Addressing any gaps that may hinder your scaling up with help to make your growth sustainable.
What will you scale up in?
Will you be looking to scale up the sales function of your business through channel development, business development, marketing or possibly product development? Perhaps you’ll be looking to increase your manufacture and supply function to support larger customer orders, and boost revenue. There are many factors involved when scaling up a business. Each requires a distinct approach and detailed planning.
In order to fully support your business growth by developing your operations and infrastructure, including HR, IT and asset purchasing you will require financial resources – to support investment in assets and strengthen your working capital cycle. This is where implementing financial lines of credit and incorporating other well-planned fiscal strategies are essential to scaling up successfully.
The value of structured planning
As Tim discusses, the value of coming at your scaling up process with a robust and well thought through strategy cannot be underestimated. Among other benefits, having a plan of attack allows you to retain focus within your organisation, making sure that everyone understand their role in the process of scaling up. This will help you to keep a level of control and resilience over the growth, monitor and act upon any unforeseen situations, and raise stakeholder confidence in your business, both on the inside and externally.
You’re not alone
When embarking on a process of scaling up your business, it’s important to make the most of the help that is available to you. From accountants, business advisors and lawyers to industry specialists and local chambers of commerce, there is a great deal of help out there for business owners looking to make the leap.
It may also make sense to outsource certain functions (for example, Logistics, HR or IT infrastructure) to reduce the financial and administrative burden. And of course, getting full buy in from your staff will be instrumental.