Scaling-up a business
Developing a business model that works is a big struggle. It is not easy to find treasure wandering on uncharted territory. You know you are in business when presenting your offering, your friends like it, an extended audience likes it and you have managed to sell on a target market with a healthy profit. Yes you have started up a business but what is next?
Scaling-up the business is a different story and as M. Goldsmith says “what got you here, won’t get you there”. This means that the processes, the techniques and the systems that will grow the business to the next level are much different than the ones that got you to be a successful start-up. Multiple parameters will need to be considered when building a scaling-up plan. Key decisions will need to be taken in line with the available financial tools budgeting with care especially focusing on cash flow.
To design a successful upscale the “emergency surviving” mentality of the start-up will need to be changed to thinking big and acting bold. This will allow the strategic mind to see the bigger picture and aim much higher. When the combination of choices is made defining how to expand geographic reach, find more target markets or how to reduce the sale cycle to trigger repeat orders the plan outline will be formatted. The new company culture created will then need to be spread across the people that will be called to play a role to transform the vision to reality. Management will have to be cautious because it is not uncommon for the people that helped the company on the first steps not to have the skills or the attitude needed on this new phase.
The next critical factor that needs to be addressed accordingly is unnecessary spending. People make mistakes and if there are no specific cash flow management guidelines, dealing with more money than they are used to can prove to be very dangerous. As the cash will start flowing in, it is most likely to purchase things that are not needed, have a negative impact or dramatically increase business risk.