RISKS & REWARDS of

Scaling Your Business

Growing your business doesn't come easy, but it's worth it when you're ready.

 

 

Whether you're adding employees, services or locations — before you jump in, you'll want to get familiar with the risks and rewards of scaling up a small business.

Risk

Cash Flow Crash

The saying goes: you have to spend money to make money. When it comes to scaling up your business, you can be sure this is a challenge you'll face across every department. Being ill-prepared could cause your positive cash flow to go red.

 

From added office expenses to hiring new employees and even filling managerial positions — your business's cost will rise. Protect yourself from an imbalanced cash flow by monitoring it weekly, especially if you plan to scale up quickly.

Reward

Improved Efficiency 

When you scale up, the resources you add will create profit that often stretches beyond the almighty dollar. Upping your staff and CRM software alone can help your business run more efficiently.

 

Streamlining labor-intensive tasks, improving communication and making data-driven decisions will have your business running more efficiently. Then you'll be able to find what makes your business stand out and build upon that.

Risk

Market Swings

Reward

Adaptability & Consistency

We know scaling down is often what keeps businesses consistently successful, but sometimes it feels like regression. Get to the point where the idea of scaling down doesn't paralyze you with the fear of failing.

 

Once you've begun to scale up, you'll be able to adapt to economic changes, which means you'll also be able to identify when your business would do best by scaling down until it's time for your company's next upward wave.

Risk

Loss of Focus

The new opportunities that come with fast growth can cause distractions for business owners. While everyone loves something new, bright and shiny, don't get dragged away from what matters most to your business.

 

Make plans quarterly and stick to them. If you feel you have to jump on a new opportunity, get a second opinion from an advisor or business coach before allowing it to disrupt your current plan.

Reward

Improved Work Culture

Scaling up your business up is a great opportunity to begin building your best team. Figure out what mindset your ideal employees would have and work off of that. It's easier to build a healthy company culture than be forced to reshape it down the road.

 

Various skill sets will do great in helping your business cope with challenges. Be proactive in seeking out your employees and include behavioral interviews as well.

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