Visionary leaders like you often daydream about serving more people, but the reality is that trying to grow a service business could feel more like a nightmare if you don’t plan well.
McKinsey reports that just 22% of businesses launched in the past ten years have been successful in scaling.
Let that stat be inspiring instead of intimidating: Get reassurance about your business’s scalability with the four signs and bonus tips below.
Your phone’s buzzing non-stop, emails are flooding in and your appointment calendar is jam-packed. When your services are in such high demand that you’re constantly turning down work or finding yourself overwhelmed, it’s a glaring neon sign that your firm might be ready to scale.
This sign differs from a short-lived busy spell — it’s consistent demand over a prolonged period. Increasing volume is helpful when you plan to increase capacity to maintain quality delivery for all clients.
How to be sure: Overwhelm could also mean you and your team aren’t working efficiently or you’re attracting prospects that don’t fit your ideal customer profile (ICP). One way to identify true demand is to create or update a market analysis.
Are you consistently exceeding your revenue goals? Do you have a healthy cash flow? While that doesn’t mean you have to scale, it’s a precursor to the next phase for your business.
Having money in the bank is a start, but you also need to ensure you have the capital to invest in scaling, whether that means hiring new talent, adopting new technology or expanding your office space.
How to be sure: Learn to accurately predict revenue and profits, and consult with at least one business finance expert to double-check your numbers.
Scaling isn’t about doing more of the same if what you’re doing now isn’t efficient. Only once you’ve ironed out operational kinks will you be ready to bump up your reach.
You should have established systems and protocol for discovery calls, client onboarding, project management, invoicing, client retention, and other repeatable processes. It will become essential to replicate them quickly to accommodate growth.
How to be sure: Pinpoint any leaks or bottlenecks in your workflows now before you commit to the idea of scaling.
This is, arguably, the most vital piece of the puzzle. Your team is the backbone of everything you do. If you’ve nurtured a dedicated, skilled and motivated group of people hungry for novelty and professional development, you’re sitting on gold.
As you scale, there’s a high chance your employees will experience an increased workload, even if temporarily. You’ll want to have confidence that they can handle this period, but also reassure them and provide them the support they need to stay on board through the growing pains.
How to be sure: Find fresh ideas for inspiring your team and get started strengthening your culture before you make any big decisions about scaling. The response will help you confirm that your team is aligned and adaptable.
Scaling is as much about mindset as it is about tangible indicators. You need to be able to recognize opportunities and willing to take calculated risks. If this sounds relatable and you nodded along to the list above, it might just be time to set ambitious goals for your business growth.
All signs point to “Go!” Now what? Here are three tips for pointing your team in the direction of a newfound aim to scale.
If all of the above points to your business’s readiness to scale, it’s time to think about the last non-negotiable you must address: your tech stack. Will your current mix of platforms be able to carry your team to the next level?
When you’ve consolidated and chosen flexible, powerful platforms that grow with your business, technology acts as a supporter. On the other hand, if your tech is outdated and disjointed, you’re going to create nothing but costs and headaches.
READ NEXT: How To Consolidate Client Work Tools
Going on a drive without knowing your destination is a surefire way to get lost or run out of gas. The same goes for attempting to scale without clear insights about where your industry stands.
Being in tune with industry shifts can align your services to meet evolving demands. For instance, if you run an architecture firm and haven’t been paying attention to the trend toward eco-friendly building standards, you may be setting your business up to fall behind. Scaling is far less achievable if you’re already bringing up the rear.
Do your research, and you’ll feel empowered to make informed decisions and mitigate risks as you set and hit your new business goals.
Maybe you’re not in a position to scale yet, but you could expand certain areas of your business. Explore these five growth strategies next.
