Starting a business from scratch is a challenge all on its own but, as your business continues to grow, it’s far from the only challenge that you’re going to face. If you’re running a home business that continues to get more and more successful then, at some point, you’re going to need to think about moving it out of the home. However, how well you plan this move can either prove to be just the boost that your business needs or if you’re not careful, the mistake that could end it.
The majority of businesses that fail to make it past a year tend to fail because they didn’t scale in time or didn’t plan to scale well. Here are some of the plans you should make sure that you have in place.
Write another business plan
When you first start a business, it’s advised that you have a business plan that outlays the steps from getting everything started to the point of making a profit. However, by the time you scale, you should have followed that business plan to the letter and it might not be relevant anymore. For that reason, it might be time to go back to the drawing board.
As well as standard business plans, there are also tools known as business maps that can help you lay out the step-by-step of what you’re going to scale and what you’re going to need in order to do it. We’ll look at a few of the aspects that should be included in this business map in the following paragraphs but the point is that you should have it written down and planned out, rather than trying to simply keep it all in your mind.
Consider your staffing needs
When you scale, you’re likely to be taking on more labor to complete, whether it’s to expand your audience, to offer new services, or simply to make a more organized and productive business. As such, it’s likely that you’re not going to be able to do it all alone anymore. You’re going to have to look at working with others, but there are different ways to do that.
If you need reliable workers for the long-term, then you need to look at your responsibilities as an employer, to set up contracts, HR provisions, payroll, and to start advertising positions. However, a lot of growing businesses, especially nowadays, are making use of the gig economy. Working with freelancers can help you cut some of the costs that you might spend on employment and be able to adjust your workforce to meet flexible labor needs, too.
Choose the office space to meet your needs
If you’re expanding your team, you may need somewhere to put them. For that reason, you need to consider the prospect of actually moving out of the home and into a proper work environment. Aside from making sure you choose a good location with enough space to set up your operations, you also need to consider the prospect of designing a modern office space. The layout of your work environment, the lighting, and how much space you afford to each worker can have big impacts on morale, motivation, and productivity.
Of course, remote working and flexible workspaces are also becoming much more common. Rather than buying or renting a permanent space, you could use co-working spaces and bring your own device policies.
Know what equipment you need
If you’re going to be moving to a workspace, you also need to consider what equipment you are going to need to outfit it with. If you’re using a coworking space or another space that is rented out as already furnished, then you may not need to think about these provisions too much.
However, if you’re moving into an office space that you are renting on a lease or even buying, then you need to consider what equipment you’re going to need. Getting an office fit-out can help ensure that you have all of the furniture that you need, as well as taking care of the decorative elements of the office. However, you might also want to work with a small business IT service provider so that you can make sure that you’re fully equipped with any computers, routers, or other digital equipment necessary to do the work that you need.
Expand the target market
All of the things above, whether you make them a permanent part of the business or you use the more flexible options available, are going to cost you. You’re going to need to make more money. Of course, the point of scaling in the first place is to grow your operations, including how much you are making. As such, you should be thinking of ways to start expanding your target market or your revenue streams. Finding new markets might mean expanding into new locations or it could be as simple as investing more in online advertising to increase your reach and visibility.
Other options can include expanding by offering new products and services alongside those that you already offer. You might even be able to offer additional services to existing customers, as often it’s more cost-effective to get existing customers to spend more money than to convert new customers.
Stick to a budget
Since you’re going to be spending more money as you scale your business and also making more, should your expansion efforts be successful, tracking your cash flow and keeping accurate accounts is going to become significantly more important. For that reason, it’s a good idea to keep an accurate budget and make sure you’re alerted to any expenses and how they affect your cash flow by using business accounting software. There are various types, including for small businesses and for industry-specific needs, some of which are even free to use, initially.
With the plans above, you may be able to successfully make it from being home-based to running a more established, prestigious, and, most likely, profitable business. Just take your time and plan effectively.
