So why would you want to scale a business? And what does scaling a business mean?
To explain scaling a business I will use an example of a client of mine. Just recently they got a $25,000 order. Now they have been handling up to $1000-2000 orders up to now. Now they have a couple of choices here. They can take 4-6 months to complete the order or they can get more equipment (machines) to handle the larger orders. This example goes the same for a landscaping business that is handling small clients, construction companies with small clients etc. and suddenly has a larger client that needs more work done. Do you want to turn down this larger client or do you want to “scale” your business, hire more employees, get more equipment, so that you can handle this larger client?
In this example, acquiring more machines, employees and equipment to handle the larger orders is the definition of scaling a business. This also goes for online businesses that have tested a funnel, are getting great results with in but up to now they are putting in maybe $50 to $100 on this funnel per week. If they are seeing results after testing the funnel then it would be wise to increase the advertising budget on this funnel. Which means more clients and revenue. And in the earlier example the ability to handle larger clients.
So why would you want to scale a business?
- More revenue. The ability to handle larger clients means more revenue. Also, referrals. Eagles run with Eagles. If you work REALLY hard on your customer service, maybe even doing some extra services for them, guess what? They have friends at that level. After you have called and followed up with them, making sure they are thrilled with your service, you can then ask them, “Who do you know would be interested in these products, services, etc. ? Then you have the opportunity to service their friends who also may have larger orders.
- Same with the online funnels—more advertising dollars means more revenue.
- Let’s face it. There are only so many hours in a day. Scaling means that you duplicate yourself and your efforts. By more machine output per person, and more trained employees it relieves you from “doing it all.” So you can in turn spend more time with your family, and do other things that you love. Work life balance.
- Get the job done FASTER. With more equipment and employees you are also able to get the job done faster. Clients are not willing to wait these days especially if your competition can handle the job faster. Yep the saying “time is money” applies here. If you are a contractor working on an apartment complex, the owner wants to get these rented out ASAP. They won’t be happy with you if you take months to get a job done that should have only taken a month or so. They are paying interest, construction mortgage etc. so it’s costing them money instead of making them money. Not cool. The sooner it gets done the sooner the owner will be making money on their investment. Taking too long means lost revenue, from you and the customer you are working for.
I hope that was helpful for you—for more information and free training go to debalps.com and accountingbusinesssolutions.global.
To your success!!
Deb Alps
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