This is a collaborative post
Scaling up a small business is never going to be totally easy, but there are things you can do to smooth the path and make it easier to follow.
Do Your Research
Market research is vital so you know who your current customers are, who your future customers will be, and whether there are enough new customers to support a larger enterprise.
You want to know who else is running a similar business, what level of success are they having and what their weaknesses might be. Similarly, if there are no other businesses operating on a similar scale to yours, find out why. It might be that there’s no market, or it could be that you’ve hit on something unique.
Be careful and do your due diligence so you can move ahead confidently.
Gaining and Keeping Customers
You will have heard of the ‘sales funnel’. It’s not the most romantic of names and sounds a bit calculating and manipulative, but it basically describes your customer’s journey from their first encounter with your business to eventually making a purchase.
High on your list of priorities when expanding a small business should be a detailed plan for how you’ll attract new customers and then persuade them to buy from you.
Equally high must be retaining your existing customers. It’s much harder to find new ones than it is to keep existing customers coming back, especially if their previous buying experience has been positive. Consider how you could improve your customer service, and how you’d cope when there are more of them following expansion.
Because all businesses are different, there’s no ‘one size fits all’ method for winning and keeping customers. Your market research will help you figure your own way forward and, because it’s such a personal journey, knowing yourself is important too.
Readying Yourself
Growing a business is hard work. There’s no denying it but some people thrive on the challenge. Are you one of them?
Have a good long talk with yourself and question your motivations for wanting to expand. You must want it for yourself and your personal satisfaction, rather than being driven by external motivations because it just seems to be the expected thing to do.
Many business owners are content with their current operation and size and, for them, expansion probably wouldn’t be right. As mentioned previously, growing a business is a unique decision, tailor-made for a particular business and the needs or ambitions of the owner.
If your personal ambition ties in with your business aspirations, you’re probably good to go. But make sure the notion doesn’t fill you with dread. It should be exciting and invigorating so the extra challenge enlivens your senses rather than draining them.
Keep an Eye on the Overheads
How to pay for your business expansion is another important consideration. Extra costs may come from additional staff, better offices, vehicles or transport, stock and plant investments, legal advice, and accounting… there are lots to think about.
You may not run into all the possible extra expenses, but one that’s likely to crop up is the need for bigger or better premises. There are a couple of options to weigh up:
- Traditional Offices – depending on location and size, rental costs can be high. Do lots of careful research and remember to factor in potential hidden extras such as service costs, business rates and utilities.
- Flexible Offices to rent – offer an all-inclusive way of acquiring professional office space. Contracts tend to run monthly so you’re not tied in for the long term, including most of the extras you’d pay elsewhere, plus the nearby self-storage is very handy if you need somewhere for stock or equipment.
Storage Considerations
Not all businesses need storage, so this is another personal aspect to think about. If you use professional equipment or sell physical items, a scaled-up business will invariably include more of those things.
Retailers, unless they’re also wholesalers, probably don’t need warehouse space (at least not at first), but self storage for business could help provide space for your additional stock. Facilities often welcome business users and offer a range of secure room or unit sizes to match your needs. In convenient locations and with ample parking, they can be the ideal solution.
It’s also possible to run the business entirely from your self storage room if you include space for a table to work from. Doing this would not only help keep costs down, but it would also help you maintain a good work/life balance. With many small businesses starting from home, lots of owners find the lack of a clear division between work and home exhausting.
There’s lots to think about when you’re growing your business, and clearly this list isn’t definitive. But hopefully it offers a few tips for things to consider so you can find ways to make your personal business expansion just a little bit easier.
