5 Signs You're Ready to Scale Up Your Business
When running your own business, growth is the key to success; for start-ups it can be crucial for their survival. Knowing the right time to scale up your business is also key, grow too early and you can experience growing pains and issues that can really affect the business, grow too late and you may have missed out on key business opportunities which your competitors can then capitalise on.
The key question is, how do you know when the right time to grow is? What are the signs that it’s time to take your business to the next level? In this blog I am going to list 5 signs that its time for you to scale up your business.
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- 1. Genuinely good product or service
This one might seem obvious, but If you have a product or service that you genuinely believe in and one that has potential, then scaling up your business makes sense. If you have conducted market research and your research indicates that there is strong demand for your product, then growing your business will mean greater revenues and more product awareness, and ultimately higher profits.
Let’s say you make handcrafted watches and sell throughout the UK, if they are of high quality and your customers are routinely leaving positive reviews about the product then why not think about expanding in to other markets such as Europe or the USA? If the product you are selling is high quality, unique and there is good interest in your current market, then scaling up your business could lead to great benefits.
- 2. Turning down potential business opportunities
One of the biggest signs that your business is growing is order frequency, as your business grows, and its reputation grows, more and more people are likely to become aware of your business. This increase in awareness will often lead to an increase in the amount of orders that are being placed. If you are at a stage where you are turning down orders, then it is time to start thinking about scaling up your business. If you must continually turn down orders, then customers will begin feeling dissatisfied with the service they are being provided and go elsewhere.
Alternatively, if customers are placing orders online, however your inventory levels aren’t accurate, then they will be left feeling frustrated and likely go elsewhere. This will damage the company’s reputation and mean that these increases in orders won’t last that long after all.
- 3. Consistently beating your targets
Goals are crucial for a business to succeed. They can keep your focused and let you know when you’re straying too far from the path. Naturally, once goals are being met it is time to set new goals. As a business, if you are consistently meeting and beating the goals that you are setting for yourself then it may be time to think bigger.
Goals are important for a business because they challenge you, they force you to go the extra mile and to really stretch yourself to see what you are capable of. If the goals you are setting are too easily achievable then they aren’t pushing you to reach your full potential.
If your business is consistently hitting the targets set, then it may be evidence that it’s time to look at scaling up your business and setting ever more difficult goals for you to reach.
- 4. Strong cash flow and repeatable sales
Numbers are everything in business. They can tell you at a glance how healthy your business is and what kind of year you’re due to have through forecasting. Generally speaking, if your figures are good and you’re forecasting strong growth for the coming months, years and even longer then it makes perfect business sense to think about scaling up.
Healthy numbers are always a good indicator of how well a business is performing, and strong sales indicate that your product is good and there is a market for it therefore increasing the amount of stock you own or taking on additional staff members or expanding your warehouse would mean you can sell more products and maximise your profitability.
- 5. Good market conditions and minimal risk
Knowing your market is crucial to succeeding in business. No business venture is completely risk free, however if market conditions are looking favourable for expansion or scaling up and there is a minimal level of risk then why would you not take the opportunity to increase your revenues?
Conversely, if scaling up would actually create more risk for your business then this needs to be taken in to consideration, how much risk is it going to bring? Will the pay off be worth the risk, all these factors should be considered when thinking of expanding your business.
Clearly there are many signs and factors to consider when looking at expanding your business and this is by no means and exhaustive list. However, if you recognise some or all of these signs then I would argue that you should at least be considering the possibility of scaling up your business and looking at potential opportunities.
Regardless of how big or small your business is, Khaos Control Cloud has the capability to maintain your eCommerce business and the functionality to help you succeed. And for when you’re ready to take that next step, Khaos Control has you covered For more information or to book a demo of Khaos Control Cloud visit: https://www.khaoscloud.com/ and for Control: https://www.khaoscontrol.com/