Scaling up your business and sustaining that growth requires a careful balance between taking risks and ensuring those risks reap rewards.
Many of the businesses I work with face similar struggles when it comes to scaling their business. Five key components for review throughout your growth phase and beyond:
A business looking to scale up may need funding for a variety of different things, from acquiring a company to expanding existing premises. Finding the right investor can be a tricky process to navigate.
Banks are the obvious source of funding but don’t be too quick to reach for what you know as there are many options out there such as venture capitalists and private equity firms alongside alternative methods like crowdfunding.
Each investor will have a different view of risks and opportunities, so it is important to look into the right option for you.
Generally, as a business expands so does its workforce, but it is getting increasingly difficult to attract and retain skilled employees.
The need to differentiate your company’s offering is vital. Beware a cultural mis-match when recruiting by taking time to consider your company’s culture and whether it will be the right fit for new employees.
3. Your business plan
Business owners are pulled in a thousand different directions when it comes to the running of their business. It is easy to get caught up in the day to day and longer term ambitions and plans can be left on the back burner.
A business plan with clear goals, milestones and realistic timelines is vital to help you keep track of where your business is now, and where you are heading. It’s also an important tool that can help keep other stakeholders engaged.
4. Paying the right tax
It’s a good idea to periodically review your tax position. Often, there are areas in which you may be able to achieve tax savings which you can reinvest in the expansion of your business.
Planning opportunities often exist, so it’s vital your advisor has a detailed understanding of your long term goals, and items such as R&D tax credits are well worth reviewing.
5. Sustaining your growth
It can be easy to assume that because your business is performing well now, this success will be maintained into the future. If an unexpected bump in the road were to occur would your business be ready for it?
Take time to think about what the drivers of success are in your business. Strike a balance between investing in increasing your performance in the short term while allowing space to create capability for the future.
There are many ways to grow a business. The phenomenal growth of certain startups can be a great inspiration for established businesses. Read more about what Startups can teach us here.
Scaling up your business comes with it’s fair share of challenges. Talk to us to get the support and advice you need.
We are a firm of accountants in Surrey providing advice and services to owner managed businesses.
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