Scaling a business is no easy task for small business owners and entrepreneurs. The road to expansion is bumpy and riddled with mental and strategic pitfalls that cause revenue bottlenecks and expansion headaches.
DON’T “WING IT”—SCALEit!
There is no reason for you to feel like you are in a chaotic fog as you scale your business. Sure, at times it will get messy and occasional failure is part of the grind, but you can get through the morass by following the five simple steps in the SCALEit Method®.
Through this process, you will learn to multiply your growth across a variety of assets, including: retaining and recruiting the best talent; creating a collaborative, efficient, and satisfying workplace environment; developing new products and services and/or building your core customer base; and producing an ever-flowing stream of cash flow with consistent profits.
THE FIVE COMPONENTS TO SCALE YOUR BUSINESS
S: Strategic Vision
Knowing where you are headed is crucial in order to figure out how to get there. Yet most business owners don’t have a clear destination and this is a big reason why they flail about instead of remaining steadily on course. Your Strategic Vision—or “Big Picture Vision”—is your personal Yellow Brick Road to the Emerald City. It is the inspiration that keeps you determined and moving forward, regardless of the obligatory rejections and brick walls you will face.
C: Cash Flow
Cash flow as the life force of your company. It ensures you are pumping blood to the core systems of your business so they will thrive and grow. You must build a revenue-driven business that creates cash for your business on a daily basis. Applying SCALEit cash flow practices will give you the vitals you need to invest in your Big Picture Vision.
A: Alliance of the Team
You, as the company leader, are the Visionary. It is up to you to attract and surround yourself with creative talent and how-to experts who can transform your vision into reality. That includes your taking the lead to build a culture that aligns your team with your Big Picture Vision and feeds off your passion and energy.
Guiding your team on your Big Picture Vision journey means you must become the best possible version of yourself. If you want to expand your business by 50%, then you must grow personally by at least 60% to attain that station, carry the weight, and then have the emotional, physical, and intellectual reserves to lead it.
Execution, or taking action, is where the magic comes to life. Action is where you apply and perfect your Big Picture Vision so you can leap higher and higher in both profits and impact. Contrary to popular belief, perfection is not the true measure of how well you executed your best-laid plans. Miscalculations, mistakes, and course corrections are among the best assets in your business.
The goal of any business, in its simplest form, is to grow.
But building a successful business isn’t just about growth, or the generation of revenue…it’s about scaling.
Traditional growth is focused on increasing sales and generating new clients.
To scale your business, on the other hand, is being able to rapidly grow and generate sales with less effort and less resistance – i.e., a self-managed company that gives you the freedom and flexibility to step away for periods of time, as it continues to generate revenue.
But there are many ways to scale your business!
5 simple things you can do to jumpstart cash flow and scale your business
1. GET YOUR CUSTOMERS TO BUY FROM YOU MORE OFTEN
On average, existing clients account for 41% of small business income. They are apt to spend five times more than new clients because the relationship already exists. They trust you and know what you can do. Many customers love the idea of a “one-stop shop” where they can have all of their needs provided by one vendor. Wherever possible, upsell additional products to your customer base and become that one-stop shop.
2. THE PRODUCT PYRAMID
The Product Pyramid is a multi-tiered approach to bringing in customers at every level. Presently, you may be hitting on only one or two levels—but you have the potential to establish relationships with customers in every single one of them. For example, if you manufacture run-of-the-mill coffee makers for $79, you could also produce machines at every tier for every level of a connoisseur—all the way up to the garish $2,999 model.
Retainers are an excellent way to generate recurring revenue. Think about what you might be able to provide to your clients on a regular (i.e., monthly) basis. Rather than getting paid per project or by the hour, you are receiving a standard payment every month ($2,500, $5,000, etc.). It could be in the form of a marketing retainer, a public relations retainer, a consulting retainer, etc.
4. CERTIFICATION PROGRAMS
Perhaps your business lends itself to creating a certification program. If you and your team have expertise in an area, you can build a program that trains others to become experts as well. This is a terrific way to scale because you are getting people to sign up for a number of sessions so they may fulfill the certification obligation, which means consistent cash flow with people paying up front.
5. CONSIDER RAISING YOUR PRICES
While I’m an advocate of promotional discounts and other marketing incentives, I am opposed to pricing models that undervalue your products and services. Some business owners are afraid that customers won’t buy from them unless they are priced lower than their competitors. The truth is, you may get a customer through a lower price offering—but you won’t keep a customer this way. You want to attract customers who truly value what you offer. If you drop your prices too low, you are projecting to the marketplace that you don’t believe that your product is worth that much.
While scaling your business, always monitor cash flow and prepare for inclement weather. But never allow low ebbs in cash flow to dictate decisions that will impact the long-term success of your Big Picture Vision!
If you’d like new book to learn more about the best ways to scale your business, check out my new book Scale or Fail: How to Build Your Dream Team, Explode Your Growth, and Let Your Business Soar. You can order your copy here.
Allison Maslan, is the CEO of Pinnacle Global Network, The World Leader in Scaling Businesses and No. 1 Best Selling Author of, Blast Off. Her brand new book, Scale or Fail is endorsed by Barbara Corcoran and Daymond John of Shark Tank. She helps business owners scale their company while, at the same time, creating a passionate life.