An entrepreneur is defined as a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
The goal of an entrepreneur, or any sort of business owner, is to grow their business, also known as scaling your business. The risk here lies in putting money into a venture that may never fully come to fruition (or an entrepreneur’s worst nightmare). To mitigate the potential fallout of such risky endeavors, you should begin preparing long before you actually grow.
The most important question to ask yourself before growing your business is this: Is my business ready for growth? Am I emotionally, physically, and financially ready to scale my business? Chances are if you’re reading this article, your answer is “yes” and you’re ready to take the next step. This means taking into account your sales data, your tech, your employees, and a lot more. Don’t worry though, because I’ve compiled a handy how-to guide below.
What You Need To Know To Scale Your Business
Count Your Numbers
If you’re still on the fence about scaling your business, the most important thing you can do is look at your sales growth forecast. Be honest and realistic about your numbers, then come up with answers to these questions:
- How many new customers can I expect from scaling my business?
- What is the number of orders and revenue I’m hoping to generate?
- Going from month to month, what do I want my numbers to look like? (For example, “By March, I hope to have X amount of new customers”)
Be as specific as you can with your timeline and goals, because it’s going to make the growth process a lot more manageable if you have realistic expectations.
Get Creative With Cash Restraints
After getting your numbers together, you’ll need a way to finance your avenues of growth. I recommend getting creative with some of these options.
- Crowdfunding. Take advantage of sites like Kickstarter and Gofundme to get your idea or business off the ground and up and running.
- Small Business Contests. Basically, free money for your business. While there are plenty of government funded contests, many corporations like FedEx, Visa, and Etsy have some really good opportunities to win thousands of dollars for your business.
- Bootstrapping. Bootstrapping means saving up the money on your own and using solely your own wallet to fund your business. While this means you don’t have to go through any loan loopholes or incorporated interference, many people don’t have that kind of money socked away and so they seek other forms of funding.
Of course, these are just ideas, feel free to let your imagination run wild, you might just come up with the next big thing. After all, that’s what we do as entrepreneurs.
Check Existing Systems and Invest in Tech
A business is nothing without the systems we put together to run it. That’s why it’s of vital importance that you put money into the upkeep and efficiency of said systems. The systems I’m referring to can be
- Employees
- Online servers
- Printers
- Telephones
- Anything else that works with your business to keep it running
You must make sure they all run and work together smoothly, because these systems are often linked together. You don’t want one hiccup to impede growing traffic by shutting down your entire system. I recommend automating as much of your system as you can, as automation allows a business to run at a lower cost due to the necessity of less manual labor.
Secure the Sales
How are you going to secure new sales and potential buyers while maintaining your relationships with your existing customers?
I’ve always said that I’m in the business of people, and everyone has people. For me, keeping and adding clientele is all about connecting to my community. I’m a firm believer that my company and I are only as good as the impressions we leave on the people we serve. So, when meeting new clientele and scaling up those ranks, never forget your customers that provided you an opportunity to move forward. Listen to them if they come to you with frustrations, hear them out on a person-to-person level, and most importantly respect them.
Find Staff or Strategically Outsource
One of the biggest problems I had when scaling my own business was delegating. You know that old saying, “if you want it done right, do it yourself”? That was me. Unfortunately, if you want to grow, you’re going to need more help than you can provide and this is where hiring excellent staff comes in, or even outsourcing the labor. Your business is going to grow out of one person’s control quickly and it’s your job to begin hiring people you trust to run aspects of your business for you. Ask yourself:
- How much more labor will I need after checking the numbers and automating what I can?
- Who in my existing staff would I trust to be promoted to a managerial position?
- What would a new division’s salaries look like?
- Would my company benefit more from outsourcing the new labor we need?
Stay “Tuned In” to Your Business, Always Seek Improvement
As your business grows, it’s important to stay involved even at the lower levels. You’ll find as you scale your business that time becomes a precious commodity. That being said, find the time to be present in your business. Much like your customers, your crew deserves respect and an active listener. Being on site will also give you a chance to see where your business needs improvement and remember you can always improve. Not every idea will be amazing, and you might make a mistake or two, but as long as you’re listening and responding to your business as it grows, you have nothing to fear. And if you run into hard times, it’s always a good idea to ask for help. Plenty of people have been in your situation and survived, so take their advice when they offer it.
Jason Lee, born and raised in Frederick, grew up right across from the Frederick Fairgrounds in the Lucas Village Community. He attended local schools and graduated from Thomas Johnson High School, after which he began work at Burger King, where he began his entrepreneurial journey. Lee now owns his own business, Lee Building Maintenance, which he runs with President and wife April Lee. Outside his seat on the Chamber of Commerce’s executive board, Lee is a past president of the Rotary Club of Carroll Creek, remains on the board for Frederick County Workforce Services and the local Interfaith Housing Alliance Business Council, and serves as an advisory board member for both Hood College and First United Bank & Trust. He is also a board member of the Building Service Contractors International (BSCAI).
Frederick Chamber Insights is a news outlet of the Frederick County Chamber of Commerce. For more information about membership, programs and initiatives, please visit our website.