You can scale up your small service-based business; you just need to think outside the box of how to achieve this kind of growth. Scaling your business allows you to take advantage of economies of scale, create brand recognition, and generate recurring revenue.
Automate Processes to Improve Efficiency
Automating day-to-day processes makes your business more efficient, providing you with more time to focus on expanding your startup. Consider using an accounting package that automates your invoicing process. For example, if you own a human resource consulting business, you could use bookkeeping software to send electronic invoices to your customers. Improve your cash flow by sending automated reminders before payment is due. Use data analytics software to analyze where your business could improve its revenue. For instance, data may suggest it is beneficial to extend your trading hours on a particular day of the week.
Hire Additional Employees
Hire additional staff to increase your business’s output. Hire employees who can provide the services you offer at the standards your clients expect. Talented personnel help you scale your operation. For example, if you own a small financial planning business, hiring a well-respected advisor could secure several of that advisor’s high net worth clients. If your business has a small budget for hiring staff, consider working with independent contractors to scale your output as needed. For instance, you could hire a team of 10 independent accountants to help prepare for a large bid.
Increase Your Customer Service Activities
While scaling your business, don’t overlook customer service. Many referrals come from word-of-mouth advertising, so it’s important to keep your clients happy. Use customer relationship management software to monitor your clients’ behaviours and help your business meet their needs. For example, you may find out that your clients have prefer to buy a particular service you sell. You can scale your offerings in that area to help satisfy your clients. Encourage your existing customers to mention your business to their network by offering a reward for referrals. For instance, you could provide a 10% fee reduction for each successful referral.
Form a Strategic Partnership
Build a strategic partnership to scale up your services business. Find a business partner that offers similar services to create synergies that increase the efficiency of your business. For example, if you own a small health clinic, you could team up with a doctor’s office to save on marketing costs and other expenses. The combined resources of an alliance allow your business to scale up your efforts to attract new clients and expand your operations. Before forming a strategic partnership, make sure both parties discuss what they want from the arrangement; both businesses need to have similar objectives. Scaling your small services business increases its output to help your startup grow. Strategies to scale up your company include automating operational processes, recruiting additional staff, enhancing customer service, and forming a business alliance.