There are certain concepts that every good entrepreneur should know. Scalability is one of them. It’s about the possibility of expanding the business (increasing revenue) without having to increase expenses in the same proportion, whether it’s costs with employees, production or anything else.
It is possible to make any business scalable by simply applying some effective strategies. See 7 tips on how to scale your business in Ukraine!
Build relationship networks
It’s about expanding networking. But, in this case, networking refers especially not to customers, but to partners in general, which can be other professionals and other companies (from the same field or from another segment that may favor their activities).
It is possible, for example, to have freelancers subcontracted for a certain project. It is subcontracting, as there will be no employment relationships, nor the charges arising from them (such as monthly salary, vacation, 13th salary, overtime and other things). In other words, the costs will be lower, but that doesn’t mean the projects will lose efficiency.
It is necessary to choose the best professionals, evaluating their skills, training, responsibility and all the points you consider relevant to carry out your project.
Communicate and collaborate
The expression Communication and Collaboration is already very common on the internet. To scale your business, communication with clients, employees and subcontractors is essential. Everyone must “speak the same language”, that is, communication is essential for everyone to understand the company’s objectives, the strategies that must be applied, the goals to be achieved.
Collaboration is a requirement for the manager who wants to maintain good partnerships. Collaborating is knowing how to teach, knowing how to help, engaging with your team and always working in partnership — and not as if you were better than others, as if your role were only to give orders.
Quick Guide to Start Business in Ukraine: https://good-time-invest.com/investing-in-ukraine/
Develop your work system
Another way to scale your business is to develop your own work system. Once you get used to the work routine, start designing your processes. The routine involves planning and executing projects, as well as building teams.
The methodology of the operations must be simple, allowing the identification of patterns and the grouping into processes that are easy to understand and execute. It is important to manage risk, paying attention to anything that can create problems.
For example, if a process for hiring employees or billing customers becomes too complicated, it is necessary to simplify it, looking for effective alternatives and replacing difficulties with solutions.
Become a customer of your partners
Become a customer of your partners, including your own employees. What do you expect from a good customer? Do the same with your partners! With regard to payment, do everything to pay on time, as this is stimulating for the employee.
In short, it is about applying the old maxim: “do to others what you would like them to do to you”. Certainly, this is a fundamental maxim for the manager who wants to effectively scale his business.
Outsource the workforce
One way to reduce costs is to outsource labor. Thus, the manager is able to expand the company’s potential and prospects without having high and, often, unnecessary expenses.
As already mentioned, it is possible to subcontract self-employed professionals to help with the development of different projects. And there are different services that can be outsourced, especially those related to middle activities, or secondary activities.
Secondary activities are those that facilitate the development of the main activities, such as cleaning, accounting, service, security and so on.
These services include call center services, which are very important for optimizing customer relationships and boosting marketing and sales. Outsourced call center services offer flexibility to meet provider and subscriber demands 24/7.
For network management, some outsourced companies provide teams of experienced professionals and network consultants who offer customized solutions for each business.
Build a solid customer base
Now we’ll talk about customers and their importance to scale your business. Of course, without customers to buy products or hire the company’s services, growth is impossible.
The first customers are the most difficult to win, as the company has not yet become known in the market and does not yet have a name to protect.
It is therefore necessary to show the consumer public that your solution works and is worth acquiring. It is an educational attitude, aimed at enlightening the consumer and can lead to sales.
Managers have a duty to treat their customers well in order to captivate them and, through them, win over new customers. Informal dissemination, done by word of mouth, is free and helps the business grow.
Never forget that it is cheaper to retain customers than to attract customers, that is, a company that wants to grow at lower costs (scalability) must seek to retain at least some of its customers.
In some cases, a few customers who buy frequently may even be more profitable than an exaggerated number of rotating customers. On average, 80% of a company’s revenue (regardless of the segment) comes from 20% of its customers.
Track the market, measure results and fix flaws
The manager who intends to scale his business needs to research the market and know in depth the field in which he operates, as this will avoid unpleasant and, often, costly surprises. For example, if there are problems on the main server, what should be done? If any customer files a complaint against the company on the internet, how to act?
For this reason, it is important to simulate situations and prepare for them. Measuring results and performance is also a way of balancing out where things are going. This way, the faults will be identified and you will be able to correct them as soon as possible.
It is important that the manager’s knowledge, available technology and measurement contribute to timely, well-founded and well-focused decision-making on the best solution.
It’s worth saying that scaling your business involves a few features. The scalable enterprise, therefore, must be:
- Teachable: processes must be easy to be passed on to employees and learned by them, so that productivity increases;
- Repeatable: the process must allow for frequent repetition and income generation;
- Valuable: the exclusivity of knowledge (making it valuable beyond mere monetary measures and requiring a level of expertise not yet found) adds more value to the company.