Many small business owners struggle with scaling because not all of them are attuned to the specific indicators dictating the necessity of scaling. Usually, this is due to small business owners being deep in the weeds of their business, unable to see the entire forest. However, keeping these situations in mind will help a small business owner understand the time to scale may be upon them.
Refusing Business
The biggest indicator that it’s time to scale is when inventory is low on products or the service schedule is spread thin. What this means is customers are trusting the business and referrals are coming the way of the business. Ensuring a small business can scale effectively means having a solid customer base. If new business is turned away, that indicates the solid ground on which the business is residing.
Reliable Cash Flow and Repeat Customers
When a small business is not worried about the cash coming in and the customers are consistent, it means business is good. The cash flow and the customers are the foundation of how the scaling can occur. This basis gives the small business the fuel needed to endure the difficulty that can come with scaling. Taking care of these customers and relying on the same principles establishing the foundation is critical when this situation is observed.
Low Risk Scenario
The key to scaling up is to do so when a business is ready – not when there’s an opportunity. Not all opportunities are created the same. If a small business isn’t ready to scale and tries to take advantage of these opportunities, the risk is high. A key indicator the risk is low to scale is when setting out to do so, the basic goals are easily achieved. If the small goals come on the right timing, then the big goals likely will follow. The risk is high when it’s difficult just to get going.
Understanding when to scale is different for every business. Preveer consultants have helped many small businesses scale, and they can provide input on scaling for your business. Determine if you are ready to scale or how to position yourself for those opportunities when they come around. Email here.
