It’s all about scale
There seems to be a lot of opportunities on the horizon for businesses across a variety of sectors as the economy picks up and regionally, the picture is looking very bright for the West Midlands.
Whilst some might be pursuing start-up opportunities (see our ‘resources’ section for a wealth of advice and guidance factsheets), some may be thinking about scaling up.
There are many considerations to scaling up a business that should be fully explored prior to making the move. Whilst having great ambition to grow the business is applaudable, if the groundwork isn’t put in to ensure the growth plans are being built to a solid plan, the foundations will crumble at the first hurdle.
So, what are the main points to consider when looking to scale up?
- Assess the market and competition – looking at whether there is sufficient demand to meet the extra capacity you will have when scaling up is crucial. You can learn a lot from other players in the market. Think about what might differentiate your offering from that of the competition and how you might be able to gain enough market share to make the scaling up viable
- Install the right processes – setting processes for every aspect of the business that will be effective when the workload increases is crucial. This should include everything from establishing decision makers and processes to getting the payment and invoice processes in place. Having the right decision-making process in place will make you much more able to make business decision swiftly and capitalise on opportunities that may arise
- Prepare to be agile – this relates to the above point on decision-making but also encompasses a need to think and act flexibly when needed. Rigidity in sticking to the plan will almost always result in missing out on potential opportunities
- Secure the right infrastructure – this is a double-edged sword; there is no point having a whole crew In place to deal with extra work that may not come in immediately, but equally, having to turn down business that can’t be fulfilled if you haven’t got the resources in place would be a crying shame and potentially detrimental to the business reputation. Ensure there are phases in the plan that cater for the potential requirement to expand – staff base, premises or equipment/software.
The above considerations will stand any business in good stead when thinking about scaling up. The UK economy is in a growth period that holds a wealth of opportunities. Our advice to any business thinking of expanding is to make the right considerations but ultimately, go for it!
Anyone thinking of scaling up and needing some guidance can get in touch on 01827 54944.