Simply put, to scale up a business means to improve or increase its capabilities. There are various ways to improve or increase the capabilities of a business, namely:
- Optimizing business processes – making sure the processes are effective and efficient;
- Increasing the workforce – for some types of businesses this could increase operating costs;
- Increasing productivity – this may involve reducing your product or service offering;
- Increasing market share – getting more customers. See how you can use exhibitions to get more customers.
Funding or cash investments facilitate growth where there is a strategy. What is also important to note is that these methods are not applicable for all types of businesses.
To determine which approach will work for your business, consider the following:
- How easy is it to teach the skill to produce the product or service? Do you need to recruit formally qualified people?
- Is the product or service popular with customers? *cut out products or service that customers don’t buy*
- Can you replicate the processes to produce the product or service without reducing quality?
For a dentist to grow their practice, they will have to either work longer hours to get more customers or recruit qualified staff to service more customers without extending the working hours. The same applies for consulting services.
Printing companies can buy bigger or more sophisticated machinery to print more and service more customers. This will grow the business without necessarily increasing the operating costs.