Are you pondering over strategies to scale your business? Congratulations! If you’ve made it to this phase of the business cycle, then you’re one of the 5-percent of companies that battle their way through start-up to achieve success as a stable enterprise.
However – now what? What’s your next step in your strategy to grow your business? Here’s what you need to know to take your company to the next level.
Know Your Exit Strategy
It’s a prudent move to start with the end in mind. How do you envision your company in the next 5-years? Having the endgame in mind will help you reverse engineer the process of growth. Scaling is about building a step-by-step guide for the next leg of your growth, and if you don’t know what you want, then you’re akin to a ship sailing at sea with no mast – you have no direction, and the wind and waves will take you where they please.
Understanding your exit strategy – or the point at which you wish to sell your company for a handsome profit is the beginning of scaling your business.
Shortcuts To Growth
After identifying your exit strategy, you need to determine the components that will get you there. For most business owners, this means rapid expansion through taking on debt. Debt can help you grow your company to a super-profitable status, but you need to manage the process. Taking on too much debt, or more debt than you can afford – is the easiest way to sink the ship.
There are seven ways to scale your business with the funding you need. Take a look at the following 7-models and pick the strategy that makes sense to you.
1. Bootstrapping Your Growth
Bootstrapping uses your current resources to grow your company. It’s a practical way to avoid financial risk. However, bootstrapping won’t work if your idea is to develop a multi-national conglomerate – there aren’t enough financial resources available to you with this model.
2. Strategic Business Advice
Hiring consultants to help you outline the best course of action is an excellent way to leverage the skills and expertise of others to scale your company. A consultant will help you identify the milestones and goals you need to meet to ensure you achieve your end goal.
Advisors point you in the right direction and save you from wasting time and financial resources trying to figure things out for yourself.
3. External Investment
After your advisor outlines your strategy – it’s time to find the money you need to scale. Depending on your requirements, you can choose to seek funding from the following sources.
Create More Revenue – Increasing your sales is an easy and risk-free strategy to bring your company the funds it needs to scale.
Joint ventures and partnerships – Sell some equity to partners that can provide you with skills and funds to grow.
Loans – Whether it’s a traditional bank loan, a short-term loan, or an SBA loan, there are plenty of organizations out there that loan money to going concerns. However, much of your success in securing a loan depends on a better business credit score that meets lending criteria.
Wrapping Up – Take Action Taking action towards your strategy is the number one way to ensure you grow as a company. You can have the best plan, and unlimited funding, but if you don’t take action, you’ll never achieve your endgame.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.