Most entrepreneurs or business owners make the decision to grow their business and think that the next thing to work on is SCALING. But... as an entrepreneur you must ask yourself first "why do I want to scale?"
Photo by Pawel Janiak on Unsplash
Bigger is NOT always better. The only thing that's better is BETTER!
Scaling a business is a measure of success no matter your size or industry.
Something you also need to know is that not every business can scale! Yes, not every business is meant to scale. Even though the point of scaling is to make more profit, business owners shouldn't scale if they just want a small business or a business lifestyle where they can travel, have a laptop lifestyle, or whatever. You really need to consider why you want to scale and if your reason is SOLID enough because only wanting to make more money is NOT good enough.
How do I know if my reasons are good enough to scale? Here are five (5) examples of good reasons:
- I want to be able to invest in better technology
- I want to serve more people
- I want to reach more people
- I want to have more capital
- I want to take my business or whatever you do to the next level
Did you know that about 20% of businesses fail within their first year? Scaling is growing, scaling means expanding, and scaling means hiring people. As you know smart people cost money to hire and to MAINTAIN.
What do I need in order to scale?
Here are 3 things you will need:
- You will need a scalable offer to deliver to massive amounts of people without more infrastructure. These could be things like software or a digital product. It wouldn't matter if it's 1 person or 10,000 people, your work must/would be exactly the same.
- You will need a consistent lead flow! It could be through social media, Facebook/YouTube, through a paper click, or through an infomercial, but it really doesn't matter how you want to do it just that it needs to be a consistent lead flow.
- You need closers that can close! When you're bringing in a lot of leads your next step would be closers right? So you need to have the power; the people/ the closers, people who are able to close people.
"To scale" is increasing revenue at a faster rate than costs. Businesses that can add revenue and increase operational demands while they maintain the same costs or even lower will scale successfully.
That is not ALL!
Let's talk about Dependency!!
A lot of business owners don't have systems even if they know that it's important for them. On Monday I will be posting about why having systems are important for business owners so STAY TUNED!
Systems HELP you SCALE and GROW! As a business owner, you shouldn't just be focused on doing the work but on creating a business model that is scalable and replicable.
Let's say that the business depends on you! Then that means that when the owner would go on vacation for a week and comes back, the company would literally BE GONE!!!
GONE!! Because the owner does the day-to-day operations and is the only one who solves problems.
That's why having a business model that is scalable & replicable is necessary/ essential because that would mean that the business won't be dependent on the owner but rather on the systems running it which MEANS... that the business can run/ function without you. Isn't that what you want??
So that's where having a team around you comes into play. For that, you need more profits.
Your business must grow to a certain size where you could have an executive team, people working with you together to build YOUR vision or company's vision.
Always remember!!!
BUSINESS IS A TEAM SPORT and for sure you don't want to be the key player.
Let your business be successful without you, not because of you.
And yes in the beginning you will have to nurture and build the business but someday you will want to be able to put yourself in a position where you CASH OUT, EXIT, to RETIRE COMFORTABLY and ENJOY LIFE
IF you cannot delegate effectively, you won't be able to scale.
NEVER!
If you can scale successfully, you’ll be set up for the future.
My tip to you from Dan Lok is to develop your leadership skills and to have talented people around you that can help you scale.
What is YOUR GOOD-enough reason to scale your business? Let me know in the comments!!
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