Want To Scale Up Your Business? Here’s What You Need In Order To Do So
If you are a small business owner at the beginning of your journey, chances are that you will be focused on making it past your first year. Around 75 percent of small businesses don’t survive past their first year. For those that do, many of them attribute the use of technology as a crucial factor when scaling up their operations. According to the PEX Card Mid Year Survey, a majority of small business owners admitted they had plans to grow their business this coming year. Out of those surveyed, 38 percent planned to increase spending on technology and equipment, while 25 percent of them planned to increase spending on materials. Whether you plan to utilize new technology to expand your production capacity or have plans to add an e-commerce store to your business, it’s crucial that you not only recognize the right time to scale your business, but also equip yourself and your business with the right tools to make the transition a successful one.
The Right Technology And Tools
Scaling up your business revolves around improving its capability and capacity – something the technology in your business plays a large role in. You need to ensure your business has the right tools to cope with increased activity. This may mean acquiring new machinery or storage facilities, additional computers and office equipment (for new staff), and renting new storefront spaces and company vehicles. It also refers to getting your business functions technologically ready to cope with the larger scale of business operations. Are your departments and workflow well integrated to provide a smooth flow of operations from raw material requisitions to credit control and after-sales service logging?
For accounting and payroll, there is a possible increase and expansion to prepare for including invoicing, credit control and employees working globally. In these cases, choosing or upgrading your current computerized accounting software may be time/cost-efficient and give a better view of your business performance. Finally, your IT needs may change thanks to a heavier workload or added business functions/needs like an increase in website traffic. For these, you may need to consider outsourcing your business’ IT needs to a managed service provider.
Expanded Insurance Coverage
With expanded operations comes expanded challenges and risks – which you need to plan for. If you plan to increase your sales and production output, you will need to consider increasing the value of your goods and warehouse insurance coverage to correspond with the bump in inventory. In that case, the most common insurance is commercial liability insurance which covers instances of bodily injury, property damage, and other liabilities for which your business is responsible. Additionally, more stock may require a larger fleet or warehouse – both of which will need amended insurance policies and premiums. Finally, if you plan to hire additional staff to help your business cope with increased sales or expanded operations, this means employee benefit costs, including workers comp insurance, will need to be amended to include new employees.
Real-Time Budgeting Software
Funding for your business’ expansion plans is one of the most fundamental cornerstones in ensuring your business grows successfully and at the right cost. Once you have outlined your routes/plans for business growth, it is time to ascertain the cost attached to both the overall project and separate phases. Splitting your plans into phases is smart for two reasons: it allows you to better track your progress and returns, and it gives you the opportunity to carry out your scale-up plans at your own pace. However, this can require time, professional expertise, and the use of budgeting or project management software such as Project Administrator or Calrizen, which will help you plan and track your budget throughout the scaling-up process.
Growth is a part of doing business – and a welcome one for most business owners. However, for scaling up ambitions to be achieved with minimal cost and interruption to the rest of the business, business owners/management must arm themselves with the right tools. Only by doing so can you maximize your chances of success and minimize risk to your business.
I write about technology, marketing and digital tips. In the past I've worked with Field Engineer, Marcom Arabia and Become.com. You can reach me at email@example.com
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