Business scaling 101
What does it mean to scale up? Unlike growing your business, scaling allows you to increase revenue without a substantial increase in resources
We often hear CEOs, innovators, entrepreneurs and business leaders from various industries use the word “scaling” and “growing” interchangeably when they talk about the expansion of their businesses.
While it may seem like these two terms are synonymous, they are inherently different. Both concepts are intended to increase a business’s revenue and net worth, but they both come in different approaches. Growing a business can be actively demonstrated through investing in more resources to increase product output whereas scaling a business is illustrated through growing your revenue without increasing operational cost.
To put it simply, growing a business is defined through a gradual increase in assets and scaling a business is defined through active efforts in maintaining a business’s assets. As all walks of life are going through financial hurdles due to Covid-19, more business models are leaning towards scaling their operations to avoid high expenses and debts.
Scaling your business can seem tricky and dangerous on the surface if you are unfamiliar with how it works, but once you have mastered the art of growing your resources without additional spendings, you will realise why scaling has gained popular traction in today’s day and age.
5 Ways to scale up your business
1. Optimise your digital marketing strategies
The pandemic has caused a major shift in purchasing decisions, trend patterns and consumer needs. To combat the spread of the virus, most people are opting to go digital for their daily activities. From grocery shopping to business meetings, the internet has deeply ingrained itself in the lives of many. Online traffic has tripled since the initial strike of Covid-19, which means outdoor advertisements are deemed less effective during this time.
As such, this is an opportune period to launch compelling digital advertisements or marketing campaigns as it will reach a larger audience at a much lower cost compared to traditional marketing. Also, the creation of digital marketing is less time consuming, which is why it is a no brainer that most businesses are adopting digital marketing today.
2. Outsourcing your team
If the workload among your employees is rapidly growing, they might not have the capacity to handle all the tasks assigned to them. Thankfully, there is no shortage of freelancers or individuals who are willing to work on a part-time or per-project basis in today’s hustle culture.
It is strongly advised for you to get referrals from friends, family or people you trust to find the right fit for your business. Plus, platforms like LinkedIn allows employers to do a thorough review of job applications in a few clicks and scrolls, this is a quick and convenient way for you to find an ideal candidate.
3. Maximise on your core offerings
Although it is a given that every business will eventually strive to innovate and expand its services, a business needs to stay rooted in its core offerings to solidify its brand presence. Sometimes too much change in a short time can cause a business to lose touch with its core offerings. By being persistent in your core services, it will become one of your biggest assets.
4. Invest in process management
This is similar to outsourcing, as the business expands, you might need to shift your attention to strategic operations within your company and leave the day-to-day operations of your business in the hands of others. Perhaps you might want to consider leaving your business’s monthly newsletters in the hands of an email marketing agency or let a third-party accountant handle your business’s monthly finances. All businesses essentially need one another to survive and thrive.
5. Reduce costs of incremental sales
In an attempt to pinpoint scalable elements in your business strategy, you must first inspect aspects of your business that can be reproduced swiftly and cost-effectively. If your next sale involves just as much time and effort as the one before it, then your model is not scalable.
Think about how your product’s shipment could be processed and streamlined in a way that makes it quicker and cheaper for more customers to purchase it. The more cost-effective your mass-producing mechanism is, the more scalable you will be.
Business scaling allows you to grow and make profits without having to increase operational costs. Even in these volatile times, your goal to grow your business on a global scale is still feasible if you know just what to do.
And here at TranSwap, we are all about encouraging and empowering businesses to grow and go global. If you are eager to scale up and expand your company’s global reach, TranSwap provides a suite of financial applications to help simplify and streamline the global transaction process for your business. For further enquiries, send your questions here or visit our website at transwap.com.
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