Knowing when to scale your business is just as important as knowing how to scale. Although business growth is exciting, it’s important to remember that not scaling at the right time can pose long-term problems for your business. If you grow too soon, you risk hiring the wrong people just to keep up, losing track of your company’s finances, and your team becoming overloaded and burnt. But, if you grow too slowly, you risk missing out on new opportunities, potential customers, and market share.
So how can you be sure to grow your business at the perfect time? Look for these 5 signs that it’s time to scale:
- Customers Keep Coming Back
If your customers are satisfied and keep returning for more, it’s a sign that your business is consistently delivering excellent customer service and that you’re likely to continue to see a steady demand for your products or services in the future
- You’re Meeting and Surpassing Your Goals
Setting goals helps keep your business on track. If your company is not only meeting, but also exceeding your goals every quarter, then it may be time to reevaluate your goals and plan to scale.
- You Have a Strong Team in Place
In order to create sustainable long-term growth, you need to have a strong team of core employees behind you. The right team should be comprised of people who are passionate about your product or service and dedicated to working towards your company’s future goals. If your team consists of individuals who you can count on and who you know are with you for the long haul, you have a solid foundation in place for scaling your business.
- Your Business Has a Positive Cash Flow
Being consistently profitable and having a positive cash flow shows that you’re in a good place for scaling. Having a positive cash flow and a strong cash flow forecast also indicates financial stability and can give you a good idea of your future profits and expenses.
- You Have to Turn Away Business
If you have to turn away potential customers or clients because you don’t have enough resources, then it may be time to scale. If you would be able to easily take on additional business with a larger space or a second location, by expanding your offering, with more time, or with extra staff members, it’s a clear sign that it’s time to grow.
Once you decide that now is the right time to scale, take the following steps:
- Commit to scaling and develop a plan for growth.
- Determine how much money you need to scale.
- Make sure all of your internal processes are working seamlessly.
- Explore your funding options.
- Implement your growth plan.
- Adapt and adjust as needed.
Secure capital to help you grow
Being undercapitalized and not having the cash to be able to grow is the #1 reason small businesses fail. If you’d like to learn more about how our programs can help your business scale, contact us today at (855) 784-0008 or apply today to get started!