The primary reason for starting a business is to make money (no kidding!). So it's no surprise that small business owners are almost always entirely focused on revenue. We are prepared to burn the candle at both ends in order to increase turnover and grow our operations.
But that often comes at a cost - because in the long-term - focusing on sales alone is not sustainable. That’s why as a business coach I’ve started to encourage conversations about scaling, i.e. growing is a way that is deliberate, long term, and fully in our control. It takes strategic planning and expertise to scale a company successfully.
If you are just starting out - consider my take on the 7 aspects required to scale a start-up successfully (in no particular order).
1️⃣ Make customers happy
If you can figure out what your customers want and how much they are prepared to pay for it. Then provide great value and excellent service you will grow your customer base exponentially. A great reputation for offering reliable products and unbeatable service will help achieve great ratings and bring loyal repeat customers. Focus on your customers.
2️⃣ Grow your Team
Yes - to begin with you may operate alone. But there are only so many hours in a day and at some stage your business and responsibilities will grow beyond your capacity. So you will need to delegate tasks in order to avoid dropping the ball.
Furthermore - you may want to take a break. if your business requires you to be present at all times then essentially it’s just a job! Hire experienced professionals and delegate responsibilities to free up your time, reduce burnout, improve efficiencies, morale and reduce burnout!
3️⃣ Establish Systems
Setting up well-defined procedures in your ecommerce business fosters consistency in your business. It reduces errors, shortens employee training time, improves quality assurance and; fosters employee autonomy. Systemising your operations makes them slick and controlled - ready for higher volumes and geographical replication. Finally having a process for everything in your business will allow you to delegate all functions to a team - making your business more valuable when it comes time to sell it.
4️⃣ Manage your cashflow
It is not unheard of for a company that has run for many years and is turning over millions to go under due to lack of cash. Retail is ALL about the flow of cash into your business in SALES then the flow out in the other direction on EXPENSES such as wages, interest, deliveries, prep and storage costs, advertising and much much more.
Managing the balance of this flow is critical as the costs of borrowing to cover shortfalls can decimate profits.
5️⃣ Set SMART goals
Goals are an important part of running a successful business. They provide a clear focus, motivate employees and set targets for your business to work towards. Goal setting can also provide you with a set of criteria to see if your business is succeeding - financially, operationally, strategically or in serving your customers.
When morale is low and challenges rife - being able to look back at targets you’ve achieved and also; focusing on where you are going - will also provide invaluable support.
6️⃣. Know your Why
Most business people will tell you that they are either in a crisis, coming out of one or about to get into another. Business can be mentally challenging in ways you will not comprehend until you run one.. This is why over 5% of startups fail in the first year and just over a third of startups make it to 5 years. Knowing your “why” your primary purpose for starting - will provide fuel to push through which when times get tough.
7️⃣ Seek New Capital
Using other people’s money is a great way to fund your company's growth. You may need outside investment to see your ambitious plans through. And additional capital in the form of a loan or grant can give you access to the cash you need to pay that VAT bill, keep operations afloat or fund additional staff, equipment and inventory.
If you're just starting out - you may be wholly focussed on growing your sales. You may not have time for systemisation or delegation just yet but keep these (plus other elements above). Build them into your medium-term plans as they will provide a strong foundation to stop the wheels from falling off and allow you to scale your operations seamlessly - year-on-year.
Which ones of these are you currently working on? Is there anything we may have missed here? Let us know!
