In fact, when you decide to do business, this means that you understand well that the business must be maintained and developed so that it can survive amidst intense competition. So, what happens if the business you are running feels like it is not growing, aka stuck? You might consider scaling up.
However, what is scale up? In short, scale up is a method used to develop a business. The implementation definitely cannot be done haphazardly, you need the right strategy, plan and system.
What is Scale Up?
If interpreted more deeply, business scale up is a strategy carried out to boost business growth so that it can develop in all aspects, starting from resources, systems, to the technology used.
Businesses that feel ready to implement scale up are proven to experience better development without obstacles. Even so, reality shows that quite a few business people think that developing a business is a strategy that is deemed ineffective.
Often, they think that if the business has made a profit and the BEP figure has been achieved, then it no longer needs to be developed, just maintained. Unfortunately, this is actually not quite right.
Because, without scale up, the business will tend to run in a place without progress or anything new. Not only that, it is not impossible that your business potential will also face an increasingly limited market or space which will lead to losses.
Scale Up Goals
Business scale up actually doesn’t just stop until the business grows, but rather focuses on several other goals that are no less important, such as:
- Helps increase business profits.
- Reach a wider market.
- Reduced market risk or narrower wiggle room.
- Get superior potential compared to competitors.
Characteristics of Businesses that Implement Scale Up
Some business people may still not understand whether the business they run can be said to be suitable for implementing scale up or not. There are several aspects that are characteristic of businesses that have implemented scale up, including:
- High consumer retention rate. A high repeat order value is a benchmark for businesses that have implemented scale up. It can be said that customers are happy with the product or service you offer and trust them to always use it.
- Stable evaluation report. Apart from that, a stable evaluation report, which even tends to experience consistent increases, also indicates that your business is ready to develop or scale up.
- Resources available. You need to know that scale up is a business strategy that requires resources, from funding, systems, to people.
- There is an increase in the number of loyal customers. Another characteristic of your business getting customer attention is the increase in the number of loyal customers. This means that the product or service you offer is in accordance with customer needs.
Business Scale Up Strategy
There is a reason why scaling up a business requires careful planning. Because, you have to be prepared to face all challenges by deciding to apply this method for business.
Even so, you don’t need to worry or overthink the results. You can try the following strategies to reduce the risk of failure when scaling up your business:
- Identify what the business goals are, both short and long term.
- Make sure to always do research on market conditions and potential.
- Pay attention to whether your business is ready to scale up, identify its characteristics.
- Do research on competitors.
- Maintain business values by prioritizing teamwork.
- Create clear business rule standards.
- Avoid reducing the quality of products and services, whatever the reason.
- Apply risk and obstacle analysis, then create strategies and anticipatory actions.
- Technology sensitive.
- If necessary, you can also consult a business expert.
Scale Up Stages
If you plan to scale up your business, here are the steps you must take to get optimal results:
1. Make a plan
Always plan well before you scale up your business. Because, not only increasing sales, you also have to consider many other aspects, such as promotional strategies, capital sources, human resources, location, and business operations.
2. Have financial support
Scale up is a process that requires funds to implement. This means, you must have enough budget so that the scale up runs according to expectations and doesn’t stop midway.
3. Set reasonable targets
Every business certainly has a target, because the target can be a reference in implementing business operations later. However, you should not determine your target at random. Make a realistic target that you can still achieve with the various resources you have.
4. Implement company culture adjustments
When implementing scale up in your business, you will probably recruit more employees. As much as possible, make sure new employees can adapt to the company culture and in accordance with the vision and mission you have set. Include them in setting strategies and policies, ask for input for business development.
5. Create product standards
Don’t forget, when you scale up your business, you should avoid lowering the standards or quality of the products and services you offer. This can be another consideration that keeps old customers loyal, it also doesn’t rule out the potential for you to get new customers.
Scale up is an important step in business so that the business can remain competitive and grow. Apart from implementing scale up, you can also maximize business operations by utilizing the Labamu application.
There are various features available that can facilitate and maximize business activities in various sectors, starting from Cashier POS, Raw Material Arrangement, Desktop Application Services, to creating Bills and Reports. Come on, download Labamu!
