3 Tips on how to scale your business effectively
Silvia Myers, Founder of Bright Cherry
I’ve seen that many small business owners and particularly entrepreneurs who are just starting up a struggle with scaling their business effectively. That’s why I want to go through some tips on how to scale your business and most importantly how to do it effectively so that it’s working for you.
1. Apply the 80/20 rule
Do you know who your high-value customers are? Do you know who are the 20% of your customers bringing 80% of your business? What are their names, interests, challenges, desires, and fears? If you are not clear on that, make sure you find out who these people are. Because when you are looking to grow, you most importantly want to grow your high value 20% and not the 80% who might give you volume but a headache at the same time…
I can tell you from my personal experience that small business owners tend to chase the money and the low hanging fruit because that’s how they think they’ll grow. However, that very behavior ends up preventing them from doing so in a long run.
“I was no different. I was following the money, growing my customer base fast until I realised that by accepting every customer, I was trying to be everything to everyone and ended up being nothing to anyone.
My enthusiasm for getting new customers on board was short lived as that prevented me from growing down the path. I had to reflect my 80/20 rule and start all over again.
2. Make sure you have a customer retention strategy in place
Typically when businesses start to grow, they tend to create what’s called a ‘leaking bucket’. This means that they are acquiring new customers but at the same time losing the old ones. The secret to successful business scalability is retaining your existing customers. Therefore, you want to understand what your customers like, what could you improve and why are they choosing you over your competitors. This will allow you to serve your customers better which will allow you to retain them long term while you acquire new business.
3. Automate and Scale
The third secret to successful business scalability is automation. I’ve seen lots of growing businesses piling more people on top of their workload and existing processes. As a result, these businesses tend to then outsource or offshore as the pie of work gets too big and expensive to handle. You want to avoid this and be in control. That’s how you scale effectively. So to avoid piling more people on top of an inefficient process and losing control as a result, you need to ensure that you understand why you do what you do in the first place and ask yourself, can I automate this? Can I replace this with something else that gives me the same or a similar outcome?
How’s scalability currently looking in your business? What have been some of the challenges you’ve been facing recently and how does the above apply to you? Let me know by tagging this article on my Facebook page and connecting in person. I’ll make sure I respond to your questions and comments.
Silvia is the Founder of Bright Cherry, a customer centric consultancy specialising in helping entrepreneurs and small business owners understand their customers and build successful businesses around that. The fact is that 90% of entrepreneurs fail and one of the reasons is that majority of businesses don’t understand their target market. Get in touch to join the growing network of successful entrepreneurs committed to reach new heights through delivering to their customers’ wants and needs.