Hey there everyone, George from Booming Business here.
In today’s video we’re looking at what elements you need to have in place in order to scale your business.
A question I get asked all the time is, how do you take a business and scale and grow it? Now, the reality of that question is there’s no simple answer. There’s no one solution that’s going to fit every scenario. There are however some key concepts that are consistent no matter what industry or business you’re in. Let’s go ahead and have a look at what they are so you can use them to scale your business.
Scaling a business is all about multiplication. It’s about taking a model you have mastered. A model that is efficient. A model that has inherent leverage built into it and replicating it as many times as you like.
When done correctly and you expand, it gets easier every time you do it not harder. The best part is that it also allows you to do the heavy lifting once and get rewarded indefinitely. That’s because a scaleable business is an asset that grows. It’s an asset that will constantly pay you. An asset that, should you choose, you can sell for a premium. So, let’s have a look at what makes a business scaleable.
Firstly when talking about scale, we are not talking about growth necessarily.
When most people talk growth, they’re talking about growing what they already have today. It’s activity driven.
Scale on the other hand is platform driven. It’s about providing or creating the structure to enable your business to grow exponentially tomorrow, and continue growing in a sustainable manner well into the future.
With that in mind there’re two main elements to a scaleable business.
The first one is; Business Model.
The second one is; Replication.
When talking business models I’m referring to, how you attract customers to your business, how you deliver to them and how you get paid.
Most business models are set to comprise of at least one of the following.
They attract and sell to one customer at a time. They then deliver to that customer one at a time. Then they get paid by that customer once.
If you want a scaleable business you need to alter your business model, so that:
1. With the same effort you can attract and sell to many prospects and customers at once.
2. Have a systemized method of delivery so that you can fulfill and serve one or many customers at the same time.
3. They all receive the same consistent level of service.
4. You’re also going to need a way to easily retain customers, getting them to buy from you again and again or simply pay you on a regular recurring basis.
Having said this, a model doesn’t scale by itself. Scale only happens when everything is replicatable.
When it comes to replication you need to ensure that your business processes can be repeated easily by others both locally and remotely. That as much automation is set up to minimize mistakes and oversights while maximizing consistency. There’s a lot to think about when it comes to scale and the intricacies will change depending on your business and industry.
Here’s some questions to ask yourself:
1. Are you a one to one business or one to many business?
2. How can you deliver to more and more customers with less and less resources and effort?
3. Finally, how much of a priority are systems and replication currently to your business?
Don’t be surprised if your model and focus need to change completely to facilitate growth and scale. Some of the largest most successful businesses in the world went from selling individual products to creating platforms for other to sell on, or creating intellectual property that many people purchase, license or franchise.
Some of the businesses I’ve worked with, achieved scale by going from selling furniture to consumers to selling furniture to property developers. Another went from fixing individual coffee machines to creating the leading methodology of fixing coffee machines. Yet another went from a locally based IT company with a large sales team and tailored service solutions, to a global company with an automated sales process and template based solutions.
Therefore, changing your business model and focus as you grow is completely normal. Just be sure that before you start to scale too much, you absolutely master every aspect of your model and the delivery of it.
You can’t scale what you haven’t nailed. The more you nail it, the easier it is to scale and the much more likely that everything will be very effective and successful.
Now, you’ve got a list of questions and ideas to ponder and take action on. If you have any of your own questions, please feel free to ask them in the comments below.
If you know anybody who needs to watch this video, please feel free to share it with them. Otherwise, look forward to seeing you on the next video.
I’m George from Booming Business, all the best.