Six Action Items To Consider BEFORE Scaling

Scaling takes dedication, streamlining, focus, and really thinking about what it is you want to scale and why.

Scaling starts with planning! Knowing what you think your business looks like is not really what your business is! I run into many owners/founders who say they want to scale when they really don't know or understand the complexity of the meaning of 'scaling' or the cost. It isn't just having a product or service you think everyone want or demands, it is about duplicating a process to produce a quality product on time at a profit. I hear 'I want to scale to have more revenue'. You may get more revenue from customers you don't want at the price you don't want, just to get enough momentum running through your company to establish a good process. Hmmm, you end up with no profit at the end.

So what gets in the way of scaling?

Deciding what are you going to STOP doing - you need momentum to provide energy to scale. You can't do everything, what is your laser focus on what you're going to scale. Remove all distractions.
Hiring the wrong people - we grow out of friends and family. Don't hire to solve a short term goal. Hire for where you are going, not for the problems of today.
Not spending time with your people - a meeting rhythm of weekly, quarterly, and annually must be established. Provide feedback as to how they are doing and give them a chance to provide you with feedback of how YOU are doing.
Not knowing who your customer is - you want to make sure you clearly know your customer, as they will be your investor for growth. They are your partners in scaling your company.
Not charging enough - so many forget or are not taught to create a growth budget. Scaling cost money, lots of money. Dan Sullivan of Strategic Coach says "think of the number that scares you and add 20%"
Not knowing your numbers - where are you making your money and is there enough profit in it to afford to scale? Do you have enough activity going on (leads, proposals, sales, revenue) to give you a boost to the next level? Data never lies.

In summary, there is a bridge that needs to be built before we 'build to scale". It takes a clear roadmap, tracking, enough sales, and the right people to make your organization move enough to get to that next spot. You don't always need more people and more money, you do need energy and momentum. If you think about it - more people add complexity to drag you down before you even get a running start. Increase your profit margin before you start the journey for scaling.

Categories: : Leadership, Scaling