It’s not unusual for some businesses to accelerate much faster than others, whether they’re in the same market or not. The reason why some of them can get ahead much quicker is simple: they planned and prepared for scalability from the start.
Growth is inevitable for businesses that have a solid foundation and sound strategy. But once a business reaches a certain degree of growth, it must scale up to handle such advancements. If ample plans and preparations aren’t established well before it occurs, it could stunt the company’s growth along with other disastrous consequences.
To guide you for when it’s time to scale your company, you must first learn what’s needed to have scalability in business.
1. Demand
A business that offers a product, service, or solution with little to no demand in the market is destined to fail, no matter how brilliant or innovative it may be. To scale, you must make certain that there’s an audience willing to buy what you’re offering, not just today but tomorrow and in the years to come as well.
In addition, you should also pay close attention to your competitors and uncover the problems they encountered at the start. Doing so will allow you to manoeuvre around the same pitfalls and, as much as possible, avoid making the same mistakes.
2. Growth
Growth means gradually increasing the business’ profitability throughout its lifespan. It also means going beyond normal costs and income by investing the early profits back into the business and devising new ways of generating more profit.
3. Costs
Increasing the business’ profit margins is a necessity in order to push its growth to the next level. One way of achieving this is by lowering the costs needed to out your goods or services. To greatly enhance the business’ chance of scaling well, business owners must strategise to reduce costs while increasing revenue.
4. Structure
Everything that a business uses for its operations, such as systems, tools, management software, and processes, should be designed to handle growth from the start. Additionally, choosing an appropriate organisational structure for the business is vital to avoid delaying the inevitable scaling.
Tips On Integrating Scalability Into The Business
Now that you’re acquainted with the factors that enable scaling, the next task is to see how any of them can be applied to all areas of your business. Take note of the following tips that can help you get ready to scale up.
Focus on what you do best
Small businesses typically only have a few talented individuals on their payroll. Thus, it’s best for business owners and their team to play to their strengths and delegate and outsource other business tasks to professionals and freelancers. Doing so allows everyone to double down on what they do best and focus on achieving goals and milestones more swiftly.
Apart from human resources, this tip also applies to the business’ products and services. Avoid expanding into other areas in the meantime, and keep your attention on the things you can deliver and improve on it instead.
If your business presently lacks enough manpower or expertise to handle its accounting, then it’s advisable to hire the services of the best audit firm in Singapore. At Ackenting Group, we offer extensive accounting services and cater to other corporate business requirements you may have. From simple bookkeeping to company incorporation services, we’re able to professionally handle all of your business financial needs.
Practice patience
With continued perseverance and some flexibility, business owners can overcome the business’ obstacles in time. As a business owner, you’re at the top of the corporate hierarchy with more say in the decision-making. Take time to adjust and be patient. There’s nothing wrong with growing slowly and surely, something that’s more sustainable than the rapid, unstable growth that everyone else desires.
Choose your tools wisely
Business owners must be wise when it comes to choosing critical systems for the business. Picking an extensible solution and allowing seamless communication with the business’ other systems can save the company precious time and resources down the line.
On top of that, don’t forget to stay up to date with modern technologies that can benefit the business, specifically automation. Automating repetitive tasks, like answering common customer queries, frees up many resources that could be better used elsewhere.
Conclusion
Scalability is an essential characteristic for any business that wishes to reach greater heights. By ensuring that all aspects of the business are ready to scale up when necessary, future issues can be avoided that won’t impact or delay the business’ growth.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
