by Many times, after successfully introducing a new good or service and creating distribution channels, businesses fall short of their full potential and experience a plateau in development and profitability. A company can increase its value, draw in investment, and strengthen its resilience by scaling, but doing so successfully calls for a number of variables. Many of the most prosperous companies have similar characteristics.
In the UK, the best resource for scale-ups is the ScaleUp Institute. Having worked in a wide range of industries, they have put up a list of the top 10 suggestions for startup owners and entrepreneurs.
1. Create a strategy and vision that are clear
Understanding that a company plan differs from a vision rather than only focusing on the product can help overcome growth barriers. A clear vision and a well-thought-out plan provide direction and purpose. It helps focus decision-making and steer stakeholders and the team toward common goals. Many entrepreneurs grow obsessed with their initial idea or product, but in the process, they lose out on opportunities for growth and narrow their focus too much. Remembering that investors are interested in businesses as well as products is vital. Developing a scalable business will raise its attractiveness to investors, enable market diversification, and boost resilience in an ever-changing world.
2. Improve your leadership abilities
Growing your company requires effective leadership. In addition to being able to make strategic decisions, effectively manage resources, and adjust to shifting market conditions, leaders should be able to inspire and encourage teams. In an intricate business, one person cannot accomplish that. According to research by the ScaleUp Institute, 50% of scaleups are looking for peer networks and mentors in finance, and 8 out of 10 scaleups believe it is essential to upskill their top personnel. As the company develops, its founder-led structure will need to give way to a more diversified management group in order to bring in fresh talent. As the board looks to scale up and transition, advisory boards may also assist in bringing in broader experience.
3. Make decisions based on data insights
All too often, business leaders forget to double-check data regarding the challenges and output of their enterprises. Sadly, far too often, gut instinct or intuition—which is subject to error—takes the place of knowing what is profitable, what customers value, external market trends, performance, efficiency, return on investment, and other related areas. Making sure that relevant information is recorded and that business drivers are understood will ensure that the right decisions are taken when they need to be.
Using the Business Lens Diagnostic tool, more than 200 organizations have been able to maximize growth and realize their full potential by identifying their blind spots and hidden opportunities. Get a new perspective on how your company is running and where to concentrate your efforts and resources to make the most difference.
4. Obtain financing and growth money
You need sufficient funding to grow your company by investing in marketing, hiring top talent, investing in infrastructure, and seizing new possibilities. When seeking financing from venture capital, private equity, or other sources, it is imperative to be very clear about how the money will support growth. The development of dynamic forecasts and the determination of the real business drivers and stages will make it possible to allocate funds appropriately and track actions. In order to enable “what-if” analysis to understand headroom and sensitivity and ensure that adequate financing is obtained, these variables will be included in a well-considered projection.
5. Expand your company internationally
Success often depends on expanding internationally, and research from the ScaleUp Institutes shows that exporting is a major indicator of scale-up potential. However, it is also the biggest barrier to scale-ups, with 64% of CEOs asking for more help entering new markets. Although there are many people who have gone before, global expansion is a well-traveled path that can often feel intimidating. As usual, the most important thing to remember is to make sure you plan ahead and assign the appropriate resources. Market position, distribution strategy, supply chain, finance, pricing, brand offer, legal and tax implications, and local presence are all important factors to take into account. BDO is positioned to assist your growth goals and has operations in 164 countries worldwide.
6. Draw in and keep the top talent
Scale-up CEOs have identified one of the biggest obstacles as being the development of a competent and committed workforce. Employ individuals who possess the requisite abilities and knowledge in addition to sharing the company’s vision and values. Don’t assume that the individuals on your original team will be the ones to move your company forward and overcome obstacles. However, losing qualified employees might cost your company far more than hiring new employees because it will result in lost connections and knowledge. Invest in the future of your company by appointing individuals who can adapt and grow with it, as well as by putting a strong people plan in place.
7. Prioritize your clients
Customers should come first, and you should always strive to improve their experience. As you hear from customers, respond to their needs and adjust your offers accordingly. Loyal customers may promote brands and help businesses grow by making referrals. The characteristics that most businesses will emphasize are either relationship, expertise/IP, or value. This requires having a solid understanding of your target market and your value proposition, or what it is that people actually appreciate about you. Be mindful of what your clients require.
8. simplify your procedures and activities
Streamlining internal operations, eliminating waste (or inefficiency), and improving processes to increase productivity can provide your organization with a competitive advantage because agility is crucial in an increasingly demanding world. In order to optimize resource allocation, inventory management, and customer service, it is recommended to implement scalable systems, automate repetitive processes, and leverage technology. Additionally, be ready to reallocate resources to areas where they will have the greatest impact; as the organization grows, it will need to adjust and transform.
9. Welcome to strategic alliances
Not every task needs to be completed by the team’s limited resources as the business grows. It’s critical to find strategic partners who share your growth aspirations. In order to de-risk non-core activities and avoid spending limited resources and effort, an agile organization could find it quicker to collaborate with well-established competitors. Along with shared knowledge, resources, and growth prospects, strategic partners can offer all of these. As a leading partner of the Scale Up Institute, we at BDO take great satisfaction in our commitment to assisting expanding companies as they grow and collaborating with other organizations within the ecosystem.
10. Continue to adjust
Owners and founders of businesses too frequently become inwardly focused on their work and performance. By letting the competitors take your market share or failing to adapt to changing client wants, this strategy runs the risk of causing enterprises to stagnate or even go out of business. Selecting the appropriate consultants is essential. Selecting a confidante with whom you can be open and honest is essential when making tough choices. The board needs to set aside enough time to monitor possibilities and dangers and scan the horizon. Just as your competitors will evolve and adapt, so too must you. Maintain a competitive edge by consistently refining and enhancing your processes, goods, and services. Think large, be ambitious, and have courage!
Growing a firm is a complicated process called scaling up, which calls for broader expertise, deeper resources, and different perspectives as the company develops. It also calls for a readiness to reflect on the past and pick up lessons soon (“fast fail”). Agility, flexibility, and sustained growth can be ensured by routinely evaluating and modifying tactics in response to market input and developing trends. Using BDO’s Business Lens diagnostic tool, you can evaluate your company’s performance and identify areas that require attention to reach your objectives. You can get it here for no cost at all.
