Easier said than done, right? I’ve never met an entrepreneur whose goal wasn’t to grow their business in some way. Even if they didn’t want to expand their offerings, they still wanted more revenue. Better yet, they wanted to earn money while working less. That freedom is the whole point of running your own business!
To achieve that freedom, eventually, you’ll want to scale up. That could mean taking on more clients, opening a new location, or simply making more sales. Whatever it means for you, scaling up can be tricky.
Here’s what I’ve learned about scaling your business and the pitfalls to avoid.
Scaling ≠ Spending
Once your business has been running for a while, you should have a clear picture of how much it costs to run that business. One of the biggest factors in scaling is your cost-per-acquisition. That’s marketing lingo for “how much you pay per customer.”
So what happens if you want to get a lot more customers? Ideally, your cost-per-acquisition doesn’t balloon along with your customer base.
Some business owners try to scale by simply offering more products or services. Or perhaps they open a new location. That sounds ideal until you look at the logistics. Will you generate enough revenue to justify an increase in rent, inventory, staffing, etc.? Is there a market for your additional offerings?
See, scaling really isn’t about doing (or spending) more. We call it scaling because it’s like scaling up a picture. You keep the same proportions and imagery, but the scope is larger. The picture is easier to see.
That should be your goal in scaling your business. Ideally, you benefit from growth while optimizing your costs. In some aspects, you may even spend less while earning more. That’s the dream!
To Scale or Not to Scale…
If you’ve read some of my articles about the 5 Ps, you know that your business’s success ultimately comes down to your promise. So, any decisions you make for growth should stem from that…
