So you’ve finally decided to expand your startup. It is already a given that business expansion is a tricky endeavour that has the potential to upend your business if you are not quite careful. The market is evolving faster and quicker than ever. Its volatility is at an all-time high and there is no telling what will happen to it day after day.
New inventions are arising and with it, comes the evolution of the market into something that is unrecognizable to what it once was. It must be noted that even the tiniest change in the industry can cause a revolutionary change that has the potential to drive hundreds of companies out of business.
Startups are the ones who are at most risk of falling under because of disruptive changes in their respective industry. Without adapting to the changes and adjusting their business models, no startup could hope to survive against the onslaught that is the market.
The process of expansion puts the business at high risk. Its resources, both financial and manpower, are focused mostly on the expansion that more often than not, the core of the business is affected.
Thankfully, there are certain tricks that you can employ to help your business expand without putting your business at the risk of bankruptcy.
It is not a secret that expansion will require capital. If you’re getting ready for scaling your company, I am sure that you already have the capital that you estimate you are going to need. (If you don’t have enough capital yet, then take this as a sign for you not to do it. Seriously, don’t. You will self-sabotage your venture.)
Before starting any strategy, are you sure that you have acquired enough capital? Take into consideration that the market is volatile and you will certainly encounter a number of lows. It would be best that you generate enough capital to tide you over despite multiple setbacks. This will guarantee that you do not fold at the first sign of failure.
A company with more disposable resources on hand will definitely win the race against those who cannot afford to bleed themselves as much. An excess in funds creates a safety net for you to fall back on should things start going south. Besides, there will never be a time when too many resources become bad for business.
It is so difficult to establish a business without the right manpower. A company filled with unmotivated and incompetent staff, no matter how good the management and business model is, will ultimately fail especially when it comes to crunch time. Every startup company falls prone to the common mistake of hiring not the most competent or the best fit for them but the one whose asking salary was the lowest during the recruitment process.
Most business owners focus more on hiring low-salary workers than high-quality employees resulting in a dysfunctional organization that brings more problems than positive results. In a startup, some qualities that you must look for in employees are trustworthiness, motivated, ability to work well with others, and having initiative. You are guaranteed that these employees, even though not as skilled as their peers, will strive hard to help your company towards success.
As you are working to establish your startup as one of the big boys, you should also start using the tools that companies are using. Start integrating automated software into your business operations to streamline your processes and eliminate any redundant steps.
Automated software has many features that will help make your business improve. For example, an accounting software provides to its users the ability to track all of its cash flows down to the last cent, a helpful feature especially when expanding as you want to account for all your expenditures and earnings.
Another example is by integrating a Vendor management software with helpful features such as a vendor performance scorecard that allows business owners a full visual of their vendors and their performance.
You can pull multiple all-nighters and work 24/7 but if your company or the market itself is not ready for your expansion then it will not succeed. One thing that you must know is the limitations of your startup. Know when to push forward and when to give up to save your company from losing any more resources. While it is good to be resilient, there is a time when it would be wiser to take a step back and recalculate your moves. Don’t make the mistake of running your startup to the ground for a doomed venture.
The best way to quickly expand your business is to have a positive customer base with a strong following. If your customers love your product and how you deliver it to them, then chances are they will get the word of mouth going. This is important as a referral from a trusted family member or friend will always be more effective than any kind of targeted marketing advertisement.