Scaling Up Your Business – What You Need to Know
It’s one of those beautiful nightmares to have, having to worry about just how you’re going to cope with all the business coming your way. Trust me, you’d much rather have to worry about coming up with a way to keep up with a huge and sudden spike in orders than to have to worry about little to no business at all. That doesn’t mean a booming business can never be a cause for some sleepless nights as it most certainly can and often is.
It’s one thing if you’ve already planned ahead for the possibility of a boom in business and you’re totally prepared by the time it actually happens, but how would you approach scaling up your business when it’s more of a pressing need you’re faced with than something which you can plan ahead for? Here’s what you need to know:
Growth is not directly proportional
When scaling up a business, keeping up with the growing demand is not necessarily exponential and so it’s certainly not necessarily directly proportional. This means that there isn’t a directly proportional relationship between how much you’d have to input in order to be able to match whatever output is required, such as for example if say you’re in the business of producing curtains; if you suddenly get six times as many orders as you received every month over the past few months, this wouldn’t necessarily mean that you’d now have to pay six times as much for the materials you stock. Factors which come into play in this regard are usually positive, such as the fact that you’d perhaps be able to buy more material (for the curtain example) at a lower price since bulk buying often results in cheaper prices.
At the same time, things could go the other way as well, if in sticking with our curtain production example you suddenly have to pay a bigger upfront fee for the sourcing of your raw materials and you perhaps don’t quite have the budget for it, yet you still have quite a few orders to fulfil.
Never lose sight of your core business offering
It can get very easy to want to follow-up on every subsequent opportunity to make money which suddenly becomes apparent when business is booming and when you’re scaling your operation up. However, you should never lose focus on what your core business offering is. Those other opportunities could very well not work out over the long term, so you want to make sure you can always go right back to your original and core offering.
Maintain high-quality standards
This perhaps follows on from not losing focus on your core business offering as maintaining high standards of quality in the product or service you offer is simply a matter of maintaining focus on its production. Delegation and outsourcing of some peripheral inputs such as using things like it support in Colorado could very well go a long way in freeing you up to focus on what you’re good at and to focus on what ultimately makes the crucial contribution to the bottom line.
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