Building a successful business is hard, but many become their own boss and start a business. Being a business owner is challenging, and many businesses fail.
In fact, according to Entrepeneur.com, 74 percent of new businesses fail because they decide to scale too early. The constant evolution of the business industry may seem impossible, but you can better your business with the right advisors, making good decisions, and planning. These tips help you "work smarter, not harder," and scale your company successfully.
Plan for success
Before even considering scaling your company, you must have the proper foundation. Signs that suggest it is time to consider scaling your business include when your current workforce needs help to handle the influx of workload or when you are losing potential business even after having a significant number of repeat clients. Create a specific goal for where you want your business to go, and then start planning from there. It is crucial to go over every possible scenario to be prepared for what may lie ahead. Go through budgets and location plans, continue to put hierarchies into place, and ensure everything is attainable before making any move.
Make sure you have the right talent
It may seem obvious, but having a dependable team of key employees and advisors is crucial in creating a successful business. Make sure you have the best talent for every job that needs to be executed. Your customer support should be efficient, your IT support needs to be experts in their field, and the marketing and sales teams need to know how to meet expectations. Eventually, you should be able to delegate to these key team members. To grow a business, you must build a team, or you will limit the business to the workload one person can achieve.
It is also important to reassess the advisors you use as your business grows. The initial team of advisors is excellent for starting the business, but you will have more complex issues requiring different advisors as it grows.
Invest in the business
Many owners pull all the profits from the business, limiting the ability to grow. Investing in the right technology and tools for your business is essential in today's environment. Implementing the right technology will help make the expansion process smoother. A communication platform and a customer relationship management system are crucial. Communication is always key, and having a dependable way to communicate within your company and with current and potential customers is the best way to succeed.
Take the time to prepare manuals and document processes. These will be used as a tool to help govern the organization. As you grow the business, new employees will use the information to help them onboard quicker while allowing seasoned employees a guide to reference as a refresher on the right way to provide your services.
Delegate and automate
Any tasks suitable for delegation or automation within your team should be allocated accordingly. Effective planning should enable you to adopt a "work smarter, not harder" approach. While implementation can be challenging, proper planning should empower you to position your business for future expansion. While relinquishing control can be challenging for some, delegating with appropriate oversight is feasible when you have a dependable team in place.
Diversify your customer base
Numerous businesses experience growth by initially catering to the demands of their primary customer. Often, a business commences its operations with a pivotal client, delivering exceptional service, which leads to expanded work requests. Over time, this customer may represent a significant portion of the business's revenue. However, relying excessively on this strategy can pose substantial risks to the business's overall health. If the key customer encounters financial difficulties, it could have a cascading impact on your business.
As you build your business, casting a wide net in acquiring diverse clientele is advisable. The more varied and loyal your customer base, the more robust and resilient your business will become.
Be open to exploring the M&A market
Many businesses utilize an M&A strategy to multiply. They can gain market share, geographic reach, new revenue line items, and talent more aggressively than an organic growth strategy. If you are not in a position to lead an M&A strategy but have positioned your business for solid growth, you could be a good target for a partnership, such as bringing in a private equity firm that might help the business get to the next level. Many people have made careers out of consolidating industries, and if you are not ready to lead a consolidation initiative, you might be well-positioned to participate in the upside of a consolidating industry.
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ABOUT BENCHMARK INTERNATIONAL:
Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $10 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.