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How Do You Scale a Business? 6 Tips for Business Growth

Businessman analyzing bar graph data on ipad with glasses and coffee cup in background

“How do I scale my business?” If you have a small or new company, chances are you’ve asked yourself this question at least once. Below, we consider six ways to improve your company’s growth potential, no matter what industry you’re in.   

What Does it Mean to “Scale” a Business?

Scaling a business means implementing strategies to boost revenue without increasing costs. You’re increasing cash flow, and generating more money, at a faster rate than you incur costs. 

For business owners, the goals of scaling a business can include:

  • Boosting operational capacity to meet increased demand
  • Increasing sales by expanding the target market
  • Streamlining internal processes to improve efficiency 

Scaling a business is about more than just making money. It’s about putting the tools, processes, and resources in place to support sustainable business growth.

Are You Ready to Grow Your Business?

Before you start scaling your business, here’s a question to consider: are you ready for commercial growth? 

It’s important to remember that successful scaling involves a considerable amount of pre-planning. You need to be sure that this is the right time to accelerate your business. Otherwise, you could actually damage your company’s prospects in the long run. 

Signs it might be time to scale your business include:

  • You have a clear and well-defined customer base
  • You’re at capacity and you’re now turning down opportunities
  • Cash flow is healthy, consistent, and relatively predictable
  • There are investors interested in supporting your business 

Now, here’s how to scale a company in six simple steps.

1. Understand Your Goals 

Startups can fail in the early stages because they don’t have a clear vision of what they want to achieve, Tony Robbins explains. So, your first step should be reviewing your business plan and determining your short- and long-term objectives.

  • Ensure you have a deep understanding of your niche
  • Understand your competitive advantages, or “core competencies” 
  • Set measurable goals to track your progress

2. Identify Barriers to Growth 

Look at the big picture and be realistic about challenges you face. Barriers to growth include:

  • Inconsistent or poor cash flow
  • Lack of strong leadership
  • Weak company culture
  • Inefficient operations

Be honest about your pain points and think about how you might overcome them.

3: Invest in Technology

Technology can help you streamline your operations and run your business more efficiently. 

  • Look at tools that enable you to offer more products or services without excessively increasing your operating costs
  • Hire outside help, such as managed services providers, if required 
  • Train your employees on how to use new systems effectively. Otherwise, tech improvements could hinder rather than help your company.

4. Build Your Management Team 

Many hands holding a small pot of soil with green leaves sprouting to represent business growth

As your company grows, you need a reliable management team with strong leadership skills to guide your employees. 

  • Cover all bases by recruiting leaders with different but complementary skills
  • Where possible, recruit internally to keep staff motivation levels high
  • Hire leaders who share your company’s values to minimize disruption and personality clashes

5. Make Strategic Hires  

When you’re scaling a company, you’ll only be as successful as the team you have around you. 

  • Create a culture where employees can thrive, grow, and excel
  • Aim to find new hires with similar personalities to your existing workforce – the goal is to minimize friction and disruption
  • Attract talent by improving training and promotional opportunities

You should also make yourself available to your team members. Ensure they know they can reach out to you with questions. Offer clarity where you can. Motivate them to all pull in the same direction to achieve the company’s goals.

6. Secure Financing 

It’s very likely that you’ll need additional funding to reach your long-term goals. So, one of the critical steps to scaling your business is securing the right financing. 

  • Know your market. Be aware of how fluctuations and trends could impact your ability to secure financing. 
  • Spend time researching the best funding options before making any applications

If you need fast financing and a manageable repayment schedule, contact us to see how we’re helping small businesses grow.

Scaling Your Business the Right Way 

Are you looking for business financing? Yarrow Financial can help. Our application process is quick and easy to complete. We’ll spend time learning how your business works, and we’ll match you with the right lenders for your needs. 

Ready to get started? Check your rate with our loan calculator!

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