All growth is good for a business, but what happens if you discover that your marketing has worked so well you can no longer keep up with the demand? When the costs of operating your business exceed your profit, you can quickly spiral into debt and possibly even have to scale back your operations. This negatively impacts your reputation with customers, and it may result in long-term deficit that takes months to get out of.
photo credit: Lukas / Pexels
It’s not surprising that nearly half of small businesses close within their first five years, and even more end after 10. Keeping any operation going for that long requires ingenuity, adaptability and, most importantly, patience. In our digital age, it can often feel like you’re in an invisible race to the top. You have to grow and catch up to your competitors immediately or else… or else what?
This is a question many founders rarely ask themselves, so they rush full-steam ahead and wind up burnt out or in debt for no reason. To help you grow your business sustainably, keep these scaling tips in mind. Remember that it’s not about how fast you get there. What really matters is the legacy you build and brand you establish along the way.
Build a Savings Account for Incremental Costs
Upgrading your business’s technology is expensive, especially if you experience rapid growth. One reason small businesses seem to fail at their peak is because they were not financially equipped to handle their ambitions. Scaling your company has to be done systematically, otherwise you risk overhead exceeding profit.
As a small business owner, you’re likely the primary source of funding for any necessities. It may be more profitable to keep shareholders out of the equation, but it also demands more bootstrapping when it’s time to advance.
One way you can do this is by thinking of various forms of investment. Life insurance policies that generate a cash value can be helpful down the road, so they make an excellent source of long-term protection.
Settling your policy for a cash value will give you money to allocate to your business, cover any expenses and even invest further. Cashing out a life insurance policy does not have to be a hassle, either. You can read a blog on how the whole process works and be on your way to a payout in just a few days.
Stay True to Your Niche
The company that hops on every viral trend will cheapen their name and eventually become nothing more than an amalgamation of has-been products. No one feels like they can trust a company that constantly changes its stock or seems to reinvent itself with each social media trend.
Pop culture changes far more rapidly than it did in the past; stay relevant and current, but don’t be desperate for attention. In order to stay relevant, you have to be consistent. When people who like your niche know that you are a reliable go-to, they will continue to support your brand.
Adopt changes that are meaningful instead of opting for quick cash-grabs. Your audience will repay you for it in the long run.
