Today we will talk about the different stages of growth for your business. There's that startup point then you start generating some revenue, and subsequently, we all start thinking about making it bigger or SCALING it.
The Scaling process actually begins when you start your business. You have to be thinking about scaling even if you decide never to scale. Today, I want to share with you these TOP 5 THINGS that you need to review before you scale your business:
1. Have your three P's in place - PROCESS, POLICY, and PROCEDURE.
It doesn’t matter what it is, be it as simple as answering the phone or as complex as editing a video, whatever the tasks are that it takes to run your business, there should be a process to do it. And not just any kind of process, but it has to be so simple that anybody can follow it. Scaling is the most dangerous time for businesses because without the 3P’s in place the growth from scaling will collapse your business. So make sure you have those three P’s in place, and the best way or best time to start is right now.
2. Know your REVENUE.
This may seem silly but a lot of business owners can’t answer the question when asked what their revenue is. I'm not saying become an accountant if you're not one, but you need to know your numbers.
3. Know your COSTS.
If you don't know what it costs you to generate your revenue, how do you know how much money you're actually making? You have to know what your costs are. What are your expenses, what are you spending money on? Don’t try to estimate this on your head. This has to be a written plan.
4. Give yourself an HOURLY RATE.
Your time is money. So if you're going out to do a trade show or you're traveling to do a presentation, that's your time and your time is money. You are of great value to your business and you have to decide how much each hour of you is worth.
5. Have a written FINANCIAL PLAN.
What will be the cost to the business to scale. What are you forecasting to generate in additional revenue? Will you sell additional products or services? Perhaps you will increase pricing. Most importantly are you willing to do all the things you have to do in order to make the scaling happen?
It's a BIG, BIG COMMITMENT which takes a lot of effort including daily observation of your numbers, your reporting and really retraining people to do things in a different way as you get larger. Anytime you take a small company grow it to that next level, it changes the way you operate on a day-to-day basis. I'm not saying don't scale, but I'm saying don't scale until you're prepared.
Grab your Crown and Reclaim your place on the Throne
Because you my love, are worth it!