According to the US Bureau of Labor Statistics, 20% of businesses fail during the first two years of being open.
After doing a SWOT (Strength, Weakness, Opportunities, and Threats) analysis on your business idea, you realize there are certain opportunities you can tap into by scaling. The last time you decided to scale your business, it failed terribly. Since once bitten twice shy, you’ve decided to gain more information on how to scale a business idea.
Read along to get seven useful tips on how to scale an innovative business idea.
1. Focus On Your Customers
Your customers are the most important asset you have, and thus you should focus your efforts on delighting them. Startups concentrate on impressing the stakeholders, forgetting to build good customer perception. Spend more time listening to what your customers want, and iterating your product to suit their needs better.
Stop staying in boardrooms all day, instead of spending time talking to customers. A good product sells itself through word of mouth. When your customers are happy with your products, they will recommend them to their friends and relatives, and your business will grow.
2. Build Your Employees
I’m sure you’re aware of the great perks people who work in big tech companies receive. The attractive perks motivate the employees to work towards the bigger vision of the company. However, if your business is still in its infancy stage, give your employees stock options for them to own the company.
That way, they’ll be motivated to ensure your business grows to where you intend to, for the value of their stock to increase as a result. Execution is key when scaling a business, and you need your employees to have all the energy to put in the work to ensure the business grows. Companies pay their employees well to increase retention and attract top talent.
3. Hire the Right Talent
One of the greatest ways to scale a business idea is by hiring smart and dedicated people to accomplish what’s intended. In a startup environment, the attitude and personality of the candidate you intend to hire is more important than their hard skills. The people you hire when you’re about to scale can either make or break your business.
Delegate most tasks to your employees or involve them in critical decisions to have a third eye view of the situation. Understand your business model and how it fits in the ever-changing business world. When you have the right talent working for you, any innovative business ideas you have can be executed.
4. Have Strategic Partners
There is no better way to take your business to the next level than leveraging strategic partnerships to drive growth to your business. It allows you to serve a larger market and reduces the time taken in lead generation in a new market. If you want to scale an eCommerce business, you can form a strategic partnership with a logistics company to help you deliver the products.
Strategic partnerships are for the non-core functions of the business that can be outsourced to a third party. Take time to analyze the underlying parts of your business that needs someone who understands the market better. To put this into perspective, learn more on ways you can partner with a kitting company to help you in packaging your products.
5. Franchise Model
Consider franchising if you have an innovative business idea you want to scale before someone replicates it. Franchising is whereby another company buys the right to distribute the products of the franchisor. Although the model tends to be complex, it can be one of the best ways to scale business ideas quickly.
If you’re truly looking into scaling your business faster, franchising is the best way to do that. Before you get there, you’d need to establish your brand first, which will call for a lot of marketing.
6. Acquisitions and Mergers
Forming mergers with competitors or other companies that complement what you do is another way to scale a business. More so, you can buy competitor companies that have established dominance in a particular market to make it easy to expand to that market. As of August 2021, 35,128 M&A deals have been announced, a 24% jump over last year.
You can also merge with a bigger business entity to get the resources you need to scale your idea and take it to the next level. Gaining entry into a new market can take years and consume a lot of resources.
It becomes easier to buy a company already established in the market since you’ll get to leverage their networks and clients. The beauty of acquisitions and mergers is that you reduce competition which can help operate at lower costs.
7. Time Is of the Essence
Treat time as a precious resource; Proper time management will make your business. Scaling up a business requires better time management to meet the objectives of the day, month, or quarter. Break long-term goals into short-term ones so that you spend each day working towards achieving the bigger goal.
Create a conducive environment for your employees to enhance their productivity. If a business idea is so good, you need to scale as soon as possible, and the only way to do that is by proper time management.
Take Your Innovative Business Idea to the Next Level
Scaling up a business idea is not a smooth ride. The above tips will help you scale your innovative business idea making your journey seamless and less turbulent.
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