Small business owners often seek growth opportunities, but sustainable growth is crucial. Scaling is deliberate, long-term, and fully in your control growth. This involves having a plan and being prepared to handle challenges. It’s the difference between a sudden spike in sales and a systemic failure and smooth, efficient growth with excellent customer service. Planning, expertise, and funding are necessary for scaling sustainably. This guide will help you create an effective plan for your future.
6 actions to grow your company
There is no single formula for growing a company, as each has unique advantages and disadvantages. However, common themes to consider include growing a skin care empire and a clothing company.
1. Create a future strategy for yourself
A business plan is essential for scaling sustainably and understanding the business. It should include an executive summary, company description, market analysis, management and organization, products and services, customer segmentation, marketing plan, logistics and operations plan, and financial plan. A strategic marketing plan should be created, outlining growth plans for the future. This includes realistic revenue goals for the next year and five years and strategies for increasing marketing capacity. A business plan helps in determining the company’s future goals, allowing for a clear vision of where the business can go. A business plan should also include a strategic marketing plan, highlighting realistic revenue goals and strategies for increasing marketing capacity.
2. Assess your chain of suppliers
Scaling up requires a higher volume of sales, and your supply chain needs to be equipped to handle this. Pantee, for example, started by creating underwear from thrifted t-shirts and later expanded its source materials to include dead-stock rolls of fabric. This allows for faster production while maintaining sustainability. Pantee goods are manufactured in Bangladesh, but a more local approach could help ease the stress caused by the COVID-19 pandemic. Assess whether your current sourcing and manufacturing processes still function well at scale and determine next steps if necessary. A more local approach can help ease the stress placed on global supply chains during this challenging period.
3. Make thoughtful hires
Scaling up a business can be challenging, as it may not be possible to do everything alone or with existing staff. Pantee, a social media platform, has been running with only two full-time employees and contractors. With a new investment, they are about to hire their first full-time employee, focusing on brand and community management. This decision allows them to focus on their core business. When hiring, focus on areas that will yield the most return, such as marketing, product or customer service, or sales. Employees are a significant financial commitment, so it’s crucial to focus on areas that will yield the most return.
4. Contract out to save money
Matt, a mechanical engineer with a background in data and numbers, outsources marketing tasks to an agency. Despite his technical skills, he found it challenging to launch ads on platforms like Facebook, Instagram, and Google. Matt outsourced his marketing efforts to agencies for a more sophisticated campaign and addressed order fulfillment issues by using the Shopify Fulfillment Network. As a small business grows, it’s crucial to identify areas in need of expertise and explore third-party services to address marketing challenges and improve overall performance.
5. Wherever possible, automate
Automated workflow tools can streamline customer service by creating scripted responses and using Shopify Inbox for live chat. These tools keep conversations organized, save responses, and track impact. Learn more about bots for business automation and streamline customer service for increased conversions.
6. Look for new funding
Scaling costs money, so securing outside investment is crucial for business growth. Secure capital before taking action, rather than waiting for it. Pantee needed investment beyond its initial Kickstarter campaign, and Shopify Capital is working to close the gap for women and people of color.
