Scalability: 5 ways to ensure your outgoings remain right for you
An exciting sign that your business is succeeding is when you are becoming ready to rescale your business and bring your products to a wider range of people. However, as rescaling your business can come with new challenges, you must be aware of the dangers of expanding too quickly without a definite plan.
Similarly, it is important that you understand your entire business chain and can avoid bottlenecks at each stage of your business process. Read on for our top tips on how to scale your business to ensure your outgoings remain right for you.
- Make sure you know your full upscaling plan
Before you start going down the route of upscaling your business, a laborious but incredibly useful first step is to model how your finances will change. Find a good accountant, from either your business or a private firm, and go through each level of your business.
Consider everything right down to the supply chain and operational chain, and discuss how the change will affect this level. For many companies, this will mean a change to shipping and distribution networks once more products are being shipped. For many more companies, it will be necessary to invest in more phones and phone lines, or possibly an external phone service.
The takeaway from this should be that, by the time you have had this session, you will feel as if you have been cross-examined. However, you should also be confident that you know your business inside out. If you find areas where you remain unsure of how to proceed, it may be worth going back to the drawing board until you are sure you know what to expect in those areas. This will be laborious but can be very worthwhile before you scale your company up.
- Business phone systems
When it comes to saving money, one of the major things that you need is a business phone system. Don’t just rely on phone lines; instead, go for a system that incorporates your Wi-Fi. Business phone systems by Gamma can save you money, as you only need to rely on your internet provider. You can also host conference calls and video calls and even send instant DMs to each other. This is the perfect thing if you need to contact people through different mediums.
- Poll your employees for their input
Seeing what your employees think of a planned expansion is important. You are likely to discover issues you were not aware of, and chances to coordinate the expansion to solve multiple problems at the same time.
- Upgrade technology
A major rescaling offers a valuable chance to consider what tools will be best for the new scale of your company. In a rapidly expanding company, it can be worthwhile to swap out multiple messaging and email systems for a single service such as Slack so that focused conversations can be made and tracked.
- Have a runway
A runway is the term for a reserve of money that can support an individual or company through a period without profits coming in, giving them time to sort out other issues. Ahead of your rescaling, make sure you have at least enough to keep operations running for a fortnight tucked away in case the transition means you cannot get work done for an extended period.