What Does it Mean to Scale a Business?
The process of scaling a business refers to the ways by which you increase the efficiency of your company's team alongside the increase in actual business. Picture it like this: as a new company, your customer list starts out very small. As an up-and-coming business, you can expect to have light foot traffic. Over time, you gain experience and loyal customers, and in the best case scenario, you will start to grow exponentially as the months pass by.
The point at which your list of customers starts growing is when you want to learn how to scale your business. When you master the art of scaling a business, you can grow and grow and grow...all without overexerting your energy or overbooking your work weeks. How about we put this into an everyday perspective?
Scaling your business can be equated to grocery shopping for your family over the years. Let’s say your family began as you and your spouse, and within the span of three years, you ended up giving birth to a pair of twins and then a set of triplets.
When you are only shopping for yourself and your spouse, you will probably spend roughly thirty minutes or so walking through the grocery store, putting food items into your cart. When the twins came along, grocery shopping would have taken up more of your time than when it was a shopping trip for only you and your spouse.
The same thought process will then be applied when thinking about the process of buying groceries when your set of triplets arrive. But what if we told you that you can increase the number of people you are shopping for while still staying within a thirty-minute shopping window? If you scale your shopping trips, this is entirely possible!
Scaling anything in life comes down to optimizing the efficiency of your business operations. Whether grocery shopping or running a business, it is important to focus on the long term and learn how to allocate tasks. Now that the concept of scaling a business is understood, it is time to get more specific and talk about the top five ways to take your business to the next level by scaling.
Scaling Your Business: Top Five Ways to Take Your Business to the Next Level
So you’re ready to scale your business! What an exciting business adventure. The overall idea of scaling is easy to understand, but sometimes, it can be difficult to figure out the actual steps you should take in order to implement long term business operations strategies and increase your company’s efficiency.
Five key strategies to successfully scale a business are to:
- Evaluate your business and ask yourself if you are ready
- Figure out the finances for a business growth plan
- Create a business operations plan that will consistently result in sales
- Learn about ways to improve your customer service strategies
- Hire more team members or look into outsourcing resources
Evaluate Your Business: Are You Ready to Start Scaling?
Before you take on the task of scaling a business, the very first step is to take a serious look at your business reports. In order to scale your business and make your entrepreneurial dreams come true, you have to be real and honest about how things are going at the moment. Once you have a clear understanding of business on a day-to-day level, you can start working towards achieving bigger and better things!
Figure Out the Finances for a Business Growth Plan
Scaling a business does not come with a small price. It is often quite expensive to scale a business, and this is partly why scaling a business happens over time. How much money do you anticipate putting into your business growth plan?
Do you have the funding to start scaling today, or should you plan to scale a business in a few months, after you spend time saving? If you feel that a business coach would really help you with answering these questions, reach out to someone who specializes in the coffee industry!
Create a Plan that Will Consistently Result in Sales
Envision where you want your business to be, and then start coming up with all of the details that will help you arrive at your dream destination. Before you start working to increase your sales, you will want to put a system in place that allows you to prosper with an increase in sales. If you keep your current system in place, and then try to take on even more, your business operations structure might crumble right before your eyes.
Learn about Ways to Improve Your Customer Service Strategies
Optimizing your customer service strategies is one of the most important steps in scaling your business. You should always keep your customers at the forefront of your mind, even when you are focused on parts of your business that are technically not customer-focused.
No matter what moves you make as a business owner, consider how your actions will affect the people you service. As a coffee shop owner, this entails taking the preferences of your paying coffee-drinking customers into consideration. Before changing certain parts of your company in the process of scaling your business, analyze your sales reports.
Customer service strategies are successful when they suit the demographic of your audience. If you notice that you sell a lot of one food item, or that a certain drink you offer is very popular, then it does not make sense to take it away from your menu.
At the same time, you do not necessarily have to refrain from making any changes. Keep your menu up-to-date and interesting by incorporating trendy beverage options as well as drinks that customers won’t be able to find anywhere else. Take the chili chai mocha as the perfect example of a unique spin on a common and original coffee drink!
Learn as much as possible in terms of coffee pairings. Acquaint yourself with the syrups that coffee beans taste best with, like the way caramel sauces and syrups complement Nicaraguan espresso. Have fun with your menu, and see how your customers respond!
Hire More Team Members or Look into Outsourcing Resources
Naturally, scaling a business means you have to find a way to take on more work without working every hour of the day. The most reasonable way to achieve such an impressive business operations strategy is by hiring more team members.
In the case of coffee shops, this means hiring more baristas, dishwashing crew members, coffee roasters, and various other people to fill any other positions you have available. Also, another option is to outsource your coffee roasting responsibilities to another business. If you currently roast your own beans, think about using the coffee beans of another company. It can be a bit of an ego-deflating move, but sometimes, scaling a business requires sacrifice.
Even if you can no longer say that you roast your own coffee beans, you will ultimately open your coffee shop up to a networking opportunity with another business in your industry. That’s invaluable!
Scale Your Business 101
All in all, scaling a business comes down to customer service, business operations, and focusing on the long term effects of optimizing your future plans. When you feel ready to scale your business, resist the urge to jump headfirst into everything. Instead, be strategic, analyze your business reports, and meticulously plan your next steps.
Once you feel financially secure enough to instill a business operations growth plan, start putting your ideas into action. Slowly but surely, you will not only grow as a business, but you will scale your business along the way!