Four Factors to Consider When Expanding your Business

  •    D Sivakumar is the founder of the business name generator names4brands.com. Based out of India, he is a brand consultant with over 15 years of experience.

Now that your business is flourishing, it is time you considered about scaling it up. Scaling up a business technically means that you are increasing the operational workload of your business, without any corresponding loss in efficiency or quality. Scaling up a business can have many connotations. This may mark an increase in production from an existing facility or expansion into new geographies, setting up of new plants etc.

Again, the concept of scaling up itself will vary from industry to industry and what may work in one industry say manufacturing, may not work in another industry, say hospitality. The pointers below concerning the actors to consider when scaling up are industry agnostic and give general guidelines on what should and should not be done.

1. What is it that you want to scale up?

A seemingly innocuous question, but with deep repercussions is the fundamental fact of what exactly do you want to scale up. Do you want to scale up the entire operations or only a small part of it? Do you want to enter new geographies or are you eager to target and reach out to new audiences? What kind of demand is there and how long will it last? These and more are some of the deep questions that you have to ask yourself before you consider scaling up. Do your research and convince yourself. Being self-assured of the need for scaling up is the first milestone to achieve.

2. Establish processes

Any expansion or scaling up must rest on solid processes. A failure-proof process with sufficient back-up plans will help to avoid any embarrassment. A business is built only by its reputation and nothing is more awkward than having to face the wrath of customers due to failed promises or poor quality. Be it delegation or investment in additional infrastructure to support the expansion, every aspect related to a process must be planned and defined with precision, to ensure error-free repeatability.

3. Keep finances ready

Any scaling up will require an initial investment. Be it modernization of equipment, setting up shop in a new location or whatever, it all requires that money be ready at hand. This can only be achieved by plowing back profits from before or raising capital from investors, the market or taking loans. Thus financial planning is closely related to the scale up plan and every activity must be viewed from a financial perspective as well.

4.Resist any innate urges

Sometimes, entrepreneurs get carried away and try to expand too quickly and too fast. While this model carries a lot of adrenaline, it also carries a lot of risk. Any such personal urges can be checked by creating a strong support team and by going back to the drawing board to revisit strategy, every time there is a new idea or a fresh urge to do things more quickly. The limits of any system and the ability to cope up and maintain efficiency must be impartially gauged and this is the best method to ensure long-term success, without missing any opportunity for growth.

Distil out any confusion, create and grow your organizational culture to support your dynamism and go on to roar out success!