When starting a business, it’s important to think long-term. While it can be tempting to save money initially by keeping things very basic, you could find this quite restrictive if you decide to grow your startup. Investing in a scalable business model gives you the option to easily expand your business if you so desire. Below are a few tips on how to build a scalable business model.
Avoid niche branding
A common mistake that startups can make is confining themselves into a niche. For example, setting up a store selling lawn mowers and calling yourself Mower Market could be a great way to attract customers interested in lawnmowers – but what if you want to branch out into other garden tools or even other power tools? Without changing your branding, it could be hard to expand, because customers that are looking for orbital sanders or pressure washers won’t think to visit Mower Market. By choosing a less restrictive brand name, you can give yourself the flexibility to sell different products if you later desire.
Select high quality tools
Cheap and basic tools may be acceptable for small jobs. But as you grow, you may find yourself having to invest in more elaborate equipment for more complex tasks. Consider whether it’s worth investing in a few high quality tools from the start so that you have the option to take on more challenging work in the future. For example, if you’re starting a printing business, think about the orders you could get in the future and select industrial printers that can manage these high demands if you do decide to grow.
Choose scalable software
When it comes to choosing software, you should also consider scalability. Some software solutions are made exclusively for small businesses and have very basic features. If you decide to grow your business, you could find that this software is no longer suitable and that you need to migrate to more complex software. This is a lot of hassle that could be avoided by choosing scalable software. There are payroll software options and CRM software options that you can expand with your business. Some of these have different plans for different sized businesses – once you outgrow one plan, you can simply upgrade to the next plan without having to switch to new software.
Automate processes
It’s hard to grow a business if you’re already spending hours on end doing admin. By finding ways to automate repetitive tasks, you can free up more time to focus on growth. As you’re setting up your business, think about how you can use software to automatically do tasks like data entry, invoicing, email marketing and bookkeeping. Don’t get stuck manually doing repetitive tasks for years on end that could be done with machines – automating them won’t just free up time, but could improve your morale and reduce human error.
Outsource tasks
To further free up time to spend on growth, consider how you can outsource tasks. Nowadays, it’s possible to outsource everything from social media marketing to handling phone calls. By outsourcing these tasks, you can free up time to focus on the core tasks of your business, as well as planning and implementing your growth. Just remember that outsourcing does cost money, so you may have to limit which tasks you decide to outsource in the beginning until your revenue increases. Focus first on outsourcing tasks you don’t enjoy and that take up the most time.
Limit your debts
While most startups are funded with debt, you should be careful of taking on too much debt in the beginning – the repayments and interest fees could limit your ability to spend money on growing your business. Seeking funding from investors can often be better for growth because you give away shares of your returns, which are relative to your future success. Look into options such as venture capital firms and angel investors when seeking out investor funding. Crowdfunding can also be an option to explore – in fact, a growing number of startups are now using crowdfunding platforms to cover initial costs.
Build a solid team
It’s important that you build a team who are willing to put in the effort needed to help grow your business if you decide to scale up. Don’t rush the recruitment stage when hiring employees for your business – look far and wide for the best talent to help create a solid team. Having to solve employee issues and replace staff could be very time-consuming and disruptive, so it’s important to build a team who work well together and are looking for a long-term position rather than grabbing any opportunity they can. By interviewing lots of candidates and considering their job history, you can identify the right talent.
Foster customer loyalty
Building loyal customers can be very helpful when scaling up your business. While marketing is essential when scaling up, having a steady stream of customers you can rely on could prevent you from having to ramp up your marketing quite as much as you grow. To help inspire customer loyalty, focus on getting to know each of your customers or consider putting in place a loyalty scheme in which customers can build points and get rewards. Make sure to turn your local customers into advocates for your business by asking them to leave positive reviews and recommend you to their friends.
Conclusion
Scalability is vital for any startup aiming for long-term success. By adopting a flexible approach to branding and finances, choosing scalable software, choosing high quality tools, automating processes and outsourcing non-core functions, you can lay down a solid foundation for your startup to thrive. Make sure to also build a strong team and a strong base of loyal customers. With these strategies in place, you can create a business capable of soaring to new heights.
