Business going well? Ready to scale up?
You started off quite well and now you have a few consistent customers. Business is going smoothly and you are planning on employing full-term candidates and scaling your business. However, stop there for a moment and think whether you are really ready. Many businesses have been known to scale up a little too quickly, resulting in a lot of hassle. To stay safe and to start scaling at the right time, thus, it is important to look for the following signs:
Are you getting revenue? If yes, are you accounting for it? Even if it is a simple system, you should be able to account for every single dollar that you earn. This is important because when you are able to account for your revenue you are able to predict your income and you are confident about it.
Of course being profitable is very important but confidence in the revenue and profitability go hand in hand. You should be at a stage where you are able to control expenses and are able to bring in profits. How much money are you spending on each task? How much effort is going into it? Are the returns good enough? Are they balanced? If yes, you are ready to scale. If not, wait for business to get better and start controlling your costs.
You should be in a position to see how your business will shape out in the month. You should have a system in place already to help you analyze your business month-by-month. Your system should also be able to adjust to variations in costs or income depending upon the situation. If you have such a system that helps you make predictions about your business flow, you are ready to scale up.
It doesn’t matter, if, currently you have very few employees. The question to ask is whether they are reliable and long-term. You should be confident not just about their skill and talent but also about their commitment to you. If you have even three such employees, you are good to go. Don’t analyze your employees based on how long they have been working for you. Use other parameters, which will help you judge their commitment as well.
Therefore, you are ready to scale up only when you have a reliable team and are able to predict your business, costs, and your income without hassle.
Businesses have been known to make decisions very fast especially when it coms to scaling up. Scaling up needs specific analysis and determination of your readiness. Check whether you are able to predict your profits and costs, and whether you have a reliable core team to depend on. If yes, you are ready!