How to Successfully Scale Your Small Business
Guest article written by Julia Mitchell of Outspiration.
Few things are more exciting than watching your business begin to grow. All the work you put into your startup is finally paying off! But don’t relax just yet. As your business expands and moves through its first growth phase, you need to be ready to navigate new challenges. Growth can be hard to manage. When managed incorrectly, business owners can find themselves right back where they started or worse—facing bankruptcy. To give your business the best shot at success, here are some steps you should take to manage growth effectively.
Tackle Your Legal Responsibilities
Legal issues can sink even the most successful businesses. Before your business gets any bigger, take some time to review your legal position, identify hidden risks, and remediate problems before it’s too late. Santos Legal Group can help you navigate this process. From drafting contracts to securing agreements with clients to organizing a nonprofit, Santos Legal Group will recommend the best way to establish a strong legal foundation for your growing business.
Keep in mind that if you form an LLC or corporation, you will have ongoing legal requirements such as filing annual reports to remain compliant with state reporting requirements. You can file your annual reports directly on your state’s website to keep it easy and secure. If you neglect to file your annual report, you may be hit with state penalties or lose the right to conduct business in your state.
Learn How to Outsource Effectively
As your business grows, so will your to-do list. Knowing when to hire that first employee is key. Since hiring is expensive, get comfortable outsourcing work to contractors instead of committing to a full-time worker right away. Intelegencia explains that outsourcing has evolved beyond a method of saving money on labor. Outsourcing has become an incredible tool for driving innovation. Through outsourcing, you can access expert talent, forward-thinking strategies, and innovative tools that will keep your business up to date with the latest trends.
Look Out for Cash Flow Problems
Cash flow problems are common among growing businesses. When your sales grow, so do your expenses. Make sure you can maintain positive cash flow and keep paying your bills through your business’s growth phase. Maintaining sustainable growth is important. Businesses often run into cash flow problems after a temporary surge in demand due to seasonal shopping behavior or a marketing campaign that goes viral.
Cash flow forecasting will help you avoid potential problems while your business grows. Instead of trying to do this yourself, consider hiring a professional financial team to assimilate various data sources and develop an accurate cash flow forecast.
Minimize Your Debts
If you had to take on debt to get your business off the ground, now is the time to think about paying it off. Holding onto business debt will create an unnecessary burden on your cash flow. To get your debt under control, NFCC recommends reducing your business spending. Try to cut unnecessary luxuries like free lunches for your staff or extra office space. If possible, you could even shift your business entirely online to save thousands in overhead costs every month. You may also want to try negotiating better deals with your vendors.
Maintain Focus on Your Customers
One of the biggest mistakes you can make while growing your business is losing focus on your customers. While it can be hard to dedicate time to everyone as your customer base grows, keeping your customers happy is the key to sustainable business growth. Your customers are the lifeblood of your business! Happy customers are more likely to recommend your business to others, share referrals on social media, engage with your content, and buy from you again.
Customer relationship management (CRM) platforms like Salesforce will scale with your business, so you can stay on top of your customers’ needs regardless of how big your company grows. Leverage CRM platforms to gain insights into what your customers want and go above and beyond with your customer service strategy. Ask for feedback, provide top-notch support, follow up with your shoppers, and create loyalty programs. Aim to be proactive rather than reactive with your customer service approach and your customers will notice!
Growing a small business successfully requires planning, research, and proactive problem-solving. Also, soliciting help from people who know what they’re doing never hurts! Whether this is your first business or you’ve been in the game for a while, learn how to manage growth so you can watch it thrive for years to come.
Are you looking for help navigating the legal side of your small business? Santos Legal Group can assist you with everything from business formation to trademark registration. Contact us today! Call 201-228-0796.
