Building a profitable business is an accomplishment. The thought of growing a new business might seem like a distant dream for first-time entrepreneurs. Scaling a business requires careful consideration and implementation on several fronts which can include streamlining operations, expanding marketing channels, hiring new employees, investing in new technology, and more. Here are a few ideas to help young entrepreneurs scale their first business.
Establish processes that facilitate growth.
Unanticipated business growth can cause certain processes to break down. In contrast, scalable processes alongside deploying practical tools and technology can allow for seamless and frictionless transition. Automation in the hiring process is a perfect example since hiring software can sift through hundreds of resumes and identify top applicants.
Dedicate budgets and time to digital marketing.
Digital marketing can be incredibly tough for an entrepreneur without prior experience in the field. Digital marketing trends change frequently on account of changing consumer purchase behavior and platforms like Google changing search engine algorithms. Hiring an agency that is familiar with companies in your niche can be a force multiplier if the talent doesn’t exist in-house.
Leverage freelancers to drive bottom-line efficiencies.
The freelance economy (hiring self-employed workers to undertake specific short-term contracts in return for an agreed-upon payment) is booming. Freelancers currently make up 39% of the U.S. workforce, according to freelance marketplace Upwork. Their 2022 report says more American workers are seeking independent contract work “to find greater professional fulfillment, flexibility and financial stability, and a new approach to managing their career trajectory.”
Hiring freelancers to supplement current staff can empower initiatives to upskill, cross-train, and scale up. Meanwhile, tactical roles that are less strategic, including data entry or scheduling can be completed by an affordable virtual assistant.
Keep a close eye on customer retention rates.
Did you know that it costs 5-25X less to retain an existing customer when compared to hiring a new one? Customer retention is a key metric that measures customer loyalty over time and gauges your overall success.
A few simple ways to improve customer retention include:
- Creating a resilient onboarding experience.
- Providing personalized customer experiences.
- Building trust with your customers.
- Implement a customer feedback loop.
- Developing a customer retention program.
Get comfortable with delegation.
When you start a company, you’ll naturally be comfortable wearing many hats, as startups often necessitate it. However, if you want to scale your business, it’s critical to master the art of letting go. The ability to successfully delegate is critical for business growth. Delegation is quite possibly one of the most underrated competencies in leadership.
David Ogilvy, the British advertising tycoon and founder of Ogilvy & Mather, also known as the “Father of Advertising,” once said: “Hire people who are better than you are, then leave them to get on with it … Look for people who will aim for the remarkable, who will not settle for the routine.”
The best leaders delegate. Delegating not only empowers you to scale but also takes the stress down a notch and allows you to concentrate on the principal aspects of your role.
The above-mentioned tips can prove useful as you structure your first business in a way that is built to scale. Anticipate future growth and plan for it. In some industries, acquiring a single large client can fundamentally change the way a company operates. Are you ready to scale?
Tommy Wyher is a marketer and business consultant located in Tampa, Florida. He is the founder of Husky Marketing, based in Lutz, Florida.
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