Learning the art of “scaling up without screwing up” can be tricky. At some point, we as business owners must figure out ways to grow our company, otherwise failure is the only option. Expanding a business is not as easy as it sounds and can have multiple pitfalls if they are not correctly planned for. Here are a few points to keep in mind when taking your business to the next level, (per The Guardian).
Cash flow management: The idea is simple, but important. Make sure you have enough money or cash on hand to run your business. Credit is nice, but cash is king.
Customer payments: In line with having cash on hand, chasing after payments owed is paramount in keeping your business afloat. Having 100 customers is nice, but if no one is paying you on, your business will fail quickly.
Watch out for costs: As you grow, your costs will ultimately increase. Make sure you take note of that. Also, track your profit margins with the cost growth. Make sure your product or service is a viable option moving forward.
Document business processes: The most tedious of practices but also one of the most necessary. As you grow, you will need to bring new employees on board. In order to effectively do this, documents must be in place for training and procedural purposes. The lack of process documents is one of the leading causes of business failures while growing and must be taken with extreme care.