Scaling your small business in 2021? Here’s where to start

The decision to expand your existing small firm into a larger one can be one of the most thrilling and challenging moments of your life as an entrepreneur. It's a choice that most business owners will have to make at some point, particularly if they've witnessed a rise in the size of their customer base or revenue.

While these are two of the essential foundations business owners, require as they determine if and when the time is right, there are a host of considerations to be aware of – especially today, under a cloud of the ‘new-normal uncertainty, writes  Suzanne Mitchell, Senior Director of Marketing at GoDaddy Australia.

Is it possible to grow your business?

There are a lot of different ways to scale up a business, such as increasing the number of people you have, expanding the product line you offer, or expanding into new demographics or areas. Take the time to get a solid understanding of the foundations on which your company currently stands before you commit money and energy to developing and implementing a growth strategy for your company. Examine the model your company uses currently for doing business. Is it sound from a financial standpoint? Is there sufficient demand to justify further expansion? Exist any potential roadblocks, such as unpredictability in the economic climate or the actions of competitors?

The next step is to evaluate your current workload and determine whether or not you are passing up opportunities by not scaling up. For instance, if you discover that you are frequently declining new clients, that your items are frequently out of stock, or that you simply are unable to keep up with the demand for your services, it may be worthwhile to consider expanding your business.

Evaluate your aims via an objective prism to check that there aren't any other elements at play, such as demand that varies with the seasons.

For instance, if you are a personal trainer who witnessed a surge in the number of people searching for online, at-home training programmes as a result of Australia's lockdown, you should consider whether or not the demand will remain the same in 2021 when Australia will no longer be under lockdown and gyms will once again be accessible. Having high goals and staying focused on achieving them is important, but so is being honest.

You could find it helpful to seek the direction and advice of a mentor, an experienced friend, or a family member who can provide an objective and external perspective of the opportunity you have in front of you. There is nothing stopping you from reevaluating the situation in, say, six months, should you have any concerns regarding the practicability or timing of the endeavour, regardless of how insignificant they may seem.

After all, if you hurry into a decision about which you are not one hundred percent certain, you run the risk of losing out in the long run. This is especially true if you invest in people or products that you will not be able to afford in the future. You should give some thought to your expansion strategy if you are confident that you have a strong foundation to scale and if you believe that there may be demand for what you do in the long run if you are comfortable with both of these statements.

Using sustainable growth methods

After conducting an analysis of the existing state of your company and concluding that expanding operations is both possible and in the company's best interests, you should set aside some time to devise a method of expansion that can be maintained over the course of the long run.

This strategy should be built on solid foundations and achievable and sensible, so take the time to consider everything from your existing business structure and offerings to the current economic climate and consumer behaviours.

Having established a strong plan for your firm, you should now spend some time defining how you intend to expand it. Evaluating what is working and what isn't working, deciding which areas to scale first, and how you're going to get there – whether that be by increasing the number of people you employ, investing in new technology, or introducing new products or distribution channels – are all important steps in scaling a business.

Think about how technology can help you grow your business if one of your strategies for doing so involves introducing new items or distribution channels, for instance. Local communities cannot function properly without the presence of traditional brick-and-mortar businesses.

Nevertheless, the expansion of online shopping in Australia is solid proof of the significant role that having a presence on the internet can play for businesses that want to expand and communicate with people outside of their immediate region. You may develop not only a good website with the assistance of tools such as, for instance, GoDaddy Websites + Marketing, but also a website that is just as dedicated to the success of your company as you are. Keep in mind, however, that sustainability is extremely important, so give some thought to how you will inform clients of any necessary adjustments and how you will provide any staff members with any necessary additional training.

Make it happen, then assess how well it worked

In order to successfully run a firm, particularly one that is expanding, regular analysis and improvement are required. It is essential to engage in creative and critical thought in order to ensure that your company and the manner it conducts its operations reflect the requirements and expectations of your clientele, given the rapid pace at which industries and consumer demand can shift.

It doesn't matter if you run an internet store or an omnichannel operation that incorporates both online and offline sales channels; in today's digital world, monitoring your level of performance is absolutely essential.

You may simply assess and analyse your online operations and identify what is working, what isn't working, and whether or not it is time to revise your scaling plan by using, for example, data-driven insights and guidance.

Growing your company to a larger scale can be a challenging endeavour, but it is one that has the potential – if it is addressed in a rational manner – to deliver exceptional returns in the long run. Spending some time to examine, develop, and implement digital processes could help your company scale in a way that is efficient, sustainable, and gratifying.

Guidelines for community-based business growth

It is only natural for a new business owner to be concerned about expansion, the next logical step, and the scalability of their company. It is common practise to ignore the possibility of utilising the community as a driving force for change.

I have been fortunate enough to experience accelerated growth with a community-first approach. As the Founder and CEO of Luminary, an inclusive collaboration hub that advances women through community, we opened our doors nearly a year ago and already have several hundred individual members and dozens of corporate members.

Since then, we have engaged our community, solicited their comments, and attempted to comprehend their requirements in order to successfully carry out over 175 different programmes, seminars, and events; we have also extended our physical space and begun producing a podcast.

Not only do we take the feedback from our neighbourhood into consideration, but we also incorporate it into our operations. At this time, more than fifty percent of our new members come to us through the natural process of word of mouth spread by existing members.

We give credit for both our capacity to scale and our ability to concentrate on execution to the participation of our community. Here are a few different methods that you may utilise your neighbourhood to assist in the expansion of your business.

Selecting the best squad is made easier by community

Although you might not believe it has much to do with your employment plan, the community in which you operate does. When I first started recruiting, I relied largely on my network to provide the subject-matter expertise I needed in order to discover individuals who were a good fit for the position. This network provided assistance in the areas of drafting job descriptions, conducting interviews, and benchmarking salaries for those occupations.

Without this community, I would have had a difficult time hiring people who were a good fit for the positions I had available, and to make matters worse, I would have probably chosen the wrong people, which would have cost me both time and money.

Your staff determines the culture of the community you are developing as well as the direction the company takes as it grows. Every member of my team regularly interacts, integrates, and immerses themselves with the people who make up our group.

They are an equal part of the community that is being developed within your company thanks to your efforts.

Their dedication and enthusiasm for our community-first approach have been tremendously beneficial to our rapid expansion.

Any company that makes the mistake of hiring the incorrect team is doomed to fail since it is impossible to be successful without the appropriate workforce. You can improve in this regard with the support of the community.

The best form of market research is community

Your company's first clients and early adopters are more valuable to you than any consultant or influential person could ever be since they offer a tool for growth that is more important than any advertisement. Buy-in from your followers is evidence of your success and opens up further potential for growth. After all, one's reputation is quite important, and the first impression is the most important thing.

Psychology of Collaboration

In today’s workplace, companies are challenged to keep pace with mobile employees and constant connectivity. Does your team have what it needs to stay innovative and inspired?

Listening to your customers and your community will help you with crucial business aspects like product development, pricing strategy, acquisition approach and more. The feedback is precious in the early days because you’re still trying to figure out how everything works.

While our staff are continually meeting with our members, we also ask that they participate in regular surveys that provide immediate criticism and suggestions for the business and better the community we are building. From there, we quickly respond to the feedback and make changes that help us grow and scale better.

For example, a month after we launched our business, we received enquiries about a less expensive membership for young women under the age of 25 to help them start their professional careers. We also heard from parents about gifting or sponsoring a membership.

In response, we launched our RISE Membership for this 25 and under audience, and now all our memberships can be gifted or sponsored. While these might seem small, they were decisions we could act on quickly for our existing community and prospective members.

Digitally widen your community

Because a significant portion of our efforts are concentrated offline in the real world, we have developed the ability to make use of various forms of technology in order to maintain the growth of our community online. In Luminary, we hold the belief that our members are required to connect with one another both in real life and in online communities.

During our debut, we made use of an app that was important in getting us off the ground; however, as our community grew, so did the digital requirements of its members. Within three months, we had outgrown the software that we were using, and we were forced to look for a replacement.

Again, we relied heavily on the input and guidance provided by the community when making our choice regarding the technology that we will implement. We learned that they wanted more possibilities to engage directly with other members, provide more information about themselves, and extra search phrases when looking for a member in a specific area or with a particular talent. They also wanted more opportunities to provide that information.

We used the information we gathered from our community members as a guide to assist us in developing our community further through the use of intelligent technologies. These strategies improved the overall experience of the community, resulted in even more chances for our members to connect with one another, and enabled us to develop more quickly and on a different scale.

Your business may not need a community app, but I bet you, your customers, would like the opportunity to connect with your business digitally. This connection could be as simple as claiming your Yelp Business Page or creating a Facebook Page for your business but allow customers to connect – the results may surprise you.

Community-based growth is a good endeavour

It's not easy to mature through community involvement. Because it takes time and a large amount of effort, many firms are unable to successfully establish a fan following that is supportive. There is no guarantee that it will be the most effective growth plan for every company. However, it is important to keep in mind the value that your community possesses, even if it is not the ideal customer acquisition approach for your business, because it can assist you in finding the proper team and in doing market research.

Listening to our clients and growing our company in a responsible manner are both paying off for us in many different ways. It takes time to build up a large audience, so it is OK for the scaling process to take some time. Because we put the needs of the community first, we are able to expand at a manageable rate and keep the emphasis where it belongs: on the usefulness of the programming we provide, which is the bedrock of our company.

Even the scaling of our material is dependent on the efforts of our community. Together, we have a greater impact because more than seventy percent of our programming is community-led by our members at the forefront of our organisation. There are a lot of prosperous and highly profitable businesses that are not in a hurry to scale. The advice that you should never lose sight of your mission, always put your customer's needs first, and always make sure to listen to your community is some of the greatest that I've ever gotten. It seems to be functioning.

Tips for Growing Your Business While Scaling Your Tools

What's the best time to upgrade my software tools?

You don't want your small firm to remain in its current size indefinitely, do you? You have big plans for your firm, and you want it to grow to match them. And while there is certainly nothing wrong with having lofty goals, you do need to make sure that the expansion of your business can be scaled up. If your company is unable to meet the demand for its products or services, it can lead to a variety of problems, including the commision of errors, the loss of paying clients, and the overloading and stressing of your workforce. And this can destroy the reputation that has been steadily growing for your brand.

The astute owner of a company is always analysing the efficacy of their tools, enhancing them when they can and replacing them when they can't be upgraded. However, in order to promote the growth of your firm, when (and how) should you upgrade your software tools?

Know the signs

It's not like a timetable just appears in your inbox as your company starts to expand. You're in a great position to spot signals of growth, such as rising product demand or good social media sentiment, if you're consistently reporting and monitoring your performance metrics.

You might not be able to see from your workplace how effectively your tools are handling your recent growth, though. Speak with the frontline workers who are utilising your gadgets, and be alert for the following warning flags that could stifle future expansion:

• You and your team often get frustrated with the tool.
• The tool creates friction that is detrimental to the customer experience.
• You and your team spend too much time solving problems with the tool, which has begun to affect productivity.
• The operational, productivity, and monetary costs of keeping the tool are less than the costs associated with replacing it.

Recognise your restrictions

It's possible that a few years down the road, the tools that helped get your new company off the ground won't be adequate for the tasks at hand. It is vital to take the time to discover the precise limitations of each instrument in order to develop solutions to overcome them. Once you have done this, you can go on to the next step.

What specific issues do you have with the tools that you use? Is their speed slow? Do they have a difficult time integrating with the architecture of your software? Do they have bugs or are they unreliable? In what ways do their actions hinder or impede the progress of the company?

It will be easier for you to grasp what you want from your improvements or replacements if you ask yourself these questions first.

Utilise the cloud whenever you can

The cost is, of course, the most significant obstacle in the way of upgrading or replacing your equipment. For this reason, cloud-based solutions are ideal for companies that are undergoing transitional phases or are on the edge of experiencing growth. Because of this, you won't ever have to be trapped with extra charges or equipment that aren't necessary because you can scale your provision up or down according on how quickly your business is growing. They are not only inexpensive but also simple to put into action, causing little to no disturbance or downtime.

Early on, decide which tools will best serve your needs

Last but not least, it is necessary to locate the appropriate instruments to meet your ever-evolving requirements. Although they are going to be dependent on the nature of your company, we do have some tips that we hope will be of use to clients.

Xero

Xero is an accounting software platform that runs in the cloud and is designed with the needs of small and medium-sized enterprises in mind. Because it employs a single unified ledger, you are able to work on your accounts regardless of where you are, including using the smartphone apps that Xero provides. You have the option of integrating it with Single Touch Payroll in Australia.

Sellbrite

Sellbrite makes inventory management and order fulfilment easy and frictionless with a host of multi-channel reporting tools. It enables businesses to list and sell products across multiple marketplaces from a centralised platform. With some packages free of charge, Sellbrite will be an excellent option for early-stage, small businesses. The tool is straightforward to integrate with existing technology, including Shopify, Google, eBay and more.

Shipstation

Selling products online means spending a lot of time creating shipping labels, and packing and sending orders. Shipstation is Australia's most 5-star reviewed shipping software. It helps you save time and money by managing, importing and shipping charges in one place, integrating seamlessly with a wide range of eCommerce platforms. 

Free

Scaling up your business may mean scaling up your workforce. But this needn’t come with massive overheads. Free gives companies access to a vast pool of vetted and talented freelancers at reasonable prices - every freelancer on the platform is interviewed and vetted by the team at Freeeup.

Who is Hillyer Riches?

If you’re interested in finding out more about business growth, scalability or any other aspect of your business finances, then get in touch with our financial experts. Find out how Hillyer Riches can help you with ad hoc payments or recurring payments.