You have a great business, and you’d like to scale. But do you know how to scale your company systematically? Are you ready for exponential growth?
Business Success Consulting Group CEO Adi Klevit discussed this topic with the Co-founder of Dan Bradbury Ltd, Dan Bradbury. They discussed Dan’s criteria to decide if he can help a company grow – and they talked about the pitfalls most businesses run up against.
Business Growth Criteria
Your proven business is currently making money, but you want to scale the company. What criteria must be in place to support that scaling?
Here are ten criteria that need to be in place to support business growth:
1. Risk mitigation strategy
Understand your risks and create processes and procedures to handle them. Accidents, returns, and other dangers can all eat away at your profit and cause your business to be unscalable. Creating systems to minimize risk can help boost profitability.
2. Reduce expense ratios
To scale your existing operation, you must keep expenses down as you expand. Create systems, automation, and other operational processes to keep those expenses manageable.
3. Perfect your customer retention strategy
Retaining customers and encouraging repeat purchases is statistically more profitable than gaining new customers. Of course, you do have to continue to obtain new customers, but don’t forget those you already have.
4. Find ways to drive repeat purchases
Many businesses thrive on repeat purchases from existing customers. Depending on your business model, helping a new customer may not be profitable until they become a repeat customer. Businesses that use loss leaders or spend marketing dollars to attract new clients must also drive repeat purchases. Otherwise, they will rapidly become unprofitable.
5. Reactivate past customers
Systematize reactivating past customers. Getting customers to return to your company can drive up your number of repeat purchases, ultimately increasing profitability and making your business more sustainable and scalable.
6. Find ways to raise the average order value
This is the classic “do you want fries with that” method of increasing revenue. Creating a system to upsell a client will help improve the average order value and make scaling or even franchising a realistic goal.
7. Refine your system to increase conversion rate
It is unlikely that 100% of your leads will convert into customers. That means your system for converting leads to customers can be refined. There are many ideas for follow-up systems on the internet. Try some out and determine what works for your company, then refine and document the system to ensure it is applied to every lead.
8. Design all of your marketing to reach your ideal clients
Often, what sets your product or service apart is not the price. It’s something else like style, quality, sustainability, efficiency, or beauty. However, many businesses go after price first rather than reviewing to whom they are marketing.
Reaching your ideal client means finding the tribe of people who want your product or service and desire beautiful, stylish, high-quality, efficient, and/or sustainable items. Focus on marketing to them rather than the price-conscious.
9. Systematize referrals
We have discussed this in a previous article. Many company owners say, “I get many word-of-mouth referrals,” without knowing how and why that is happening. Instead of hoping you will continue getting referrals, systematize the process and gain even more referrals. This is another key to scaling.
10. Build business systems
When scaling your company, you must have as many processes and procedures in place as possible. This will not only build efficiency and allow for automation, but it makes the products and services offered by your flagship company duplicable.
You may have noticed that all of the above steps require building or refining systems. This is because business scalability is dependent upon a replicable product or service. The only way to replicate your product or service is to create a system so that customer and employee experience remains the same across the board.
Are you ready to build or refine your systems? Get in touch with the experts at Business Success Consulting Group for a free initial consultation.