Are you planning on scaling up? Prepare for success with these five ways to set the stage for growth in your small business:
- Create Safety Nets
Safety nets are essential as a small business grows, helping to protect you from a wide range of issues that may not have been at the forefront of your mind when you launched the enterprise.
As you grow, workers comp insurance for small businesses is essential, covering medical expenses, health care, and compensation for employees injured at work. Cyber security, health and safety compliance plans, and stock security plans will help you cope with potential catastrophes – environmental, financial, or legal. These are all essential methods of preparing a small business for growth.
- Set Up Financial Options & Management
Around 29% of small businesses fail because they run out of cash. Terrifyingly, that can happen even if they have impressive profits. What happens to cause such failures? The simple answer is money mismanagement.
Whether the issue is financing delays, money being tied up in unpaid invoices, or a lack of accurate forecasting for essential costs, the areas where the money doesn’t reach in time suffer. If this goes on too long, the business fails.
To combat this problem, secure financial options like loans, grants, and investments. It’s also crucial to create a thorough cash flow plan that you regularly check and adjust. These steps will set the stage for growth that doesn’t cause catastrophic financial growing pains.
2. Have Flexible Storage and Operations Options
Retail e-commerce revenue in the United States is predicted to be worth over 1.7 billion US dollars by 2027. Whether you have an e-commerce business or operate a physical store, the fact is that as you grow, you will need some physical space to serve as your base of operations.
Some small businesses only require physical office space, while others need a fulfillment warehouse. Wherever you fall on the spectrum, scaling up will likely require more square footage than you currently have available. Get quotes for warehouse rental, office rental, and affordable options like self-storage now so that you are ready to expand as soon as your data suggests it’s the right time to do so.
3. Create A Business Plan
Around 20% of small businesses fail in year one, 30% by the end of year two, and 50% by the end of year five. There are many reasons behind these failure rates, and one of the main ones may surprise you.
When businesses expand without a sound business plan – sometimes without any business plan – they have nothing guiding their growth. The excitement and challenge of day-to-day operations can be all-encompassing, and some business owners simply don’t prioritize planning. That can result in all kinds of issues that stunt growth and, in many cases, lead to failure.
Avoid the dark side of the statistics by developing a sound business plan that sets the stage for expansion. Do so, and you can scale up safely, knowing you’ve thought through all the details.
4. Build An Exceptional Team
When you expand, you need a good team behind you to grow the business effectively. The best talent can help you power through a solid and durable expansion, especially if you’ve been juggling operations independently. To attract a talented team, consider offering hybrid or fully remote options, paying for diversity and inclusion services, and paying a fair wage that reflects your commitment to investing in your employees.
With the tips above, you’re even closer to scaling up successfully for better long-term brand prospects and risk management.