Ask the Expert: Powering small business growth – Insights from a creative entrepreneur and real estate investor

Hi! I'm Tolani, founder of the Creator Success Club, real estate investor, and alongside my husband, co-founder of the Finance Hub. I'm excited to partner with QuickBooks in their Ask The Expert series to share my insights on scaling your small business. 

For those who may not know me, I started creating content in college (@TolaniAV), and it grew into a ‘side hustle’ that eventually out-earned my full time job. My husband, Ibukunoluwa Eweje, and I took all our side hustle earnings (me as a creator, him as a licensed realtor) and dove into real estate, scaling to 18 rental units over seven years. Now, I wear multiple hats: A mom, a social media influencer, brand collaborator, and business owner.

Whether you're a creative entrepreneur like me or in any other field, scaling your business can be both exciting and challenging. Today, I want to explore key strategies that have helped me scale my businesses successfully.

Recognizing when it's time to scale

The first step in scaling your business is knowing when you're ready. For me, the signs became clear as both my creative business and real estate portfolio grew. 

Here are some indicators that it might be time to scale:

• You're consistently working overtime
• You're turning down opportunities due to lack of capacity
• The quality of your work or service is beginning to slip

Based on a recent survey by QuickBooks, “29% of small business owners report that additional help in the form of employees or contractors would alleviate stress”. I remember when my husband and I realized it was time to scale our real estate business. We were managing every aspect of our properties ourselves, and as we approached our 10th unit, we found ourselves stretched thin. That's when we knew it was time to build a team and implement systems for growth.

Financial preparation for scaling

When I decided to hire my first full-time assistant, I knew it was a big step in scaling my business. I spent several months analyzing my finances to ensure I could sustain the additional expense in best case and worst case scenarios. 

Before hiring my first full-time assistant, I went beyond just considering the salary; I factored in all associated costs, including potential training expenses, travel, and necessary online tools. I set clear financial milestones that would indicate whether the hire was positively impacting the business's growth. Finally, I made sure I had enough funds stashed away to support this new role for at least a year. This careful financial planning allowed me to focus on leveraging this new resource to grow the business, rather than stressing about making payroll each month. When scaling, a solid financial plan and foundation will not only support your growth but also protect you from potential setbacks. 

Here's a detailed breakdown of what I recommend based on this experience:

First off, create a clear budget for expansion. This is more than just estimating new expenses. It involves identifying all potential costs associated with scaling, such as new equipment, additional staff, larger office space, enhanced marketing efforts,and increased inventory (in our case added properties)etc. Additionally, I recommend breaking down the budget into phases if you're planning a gradual expansion and regularly reviewing and adjusting your budget as you progress.

Secondly, understand and manage your cash flow. Cash flow is the lifeblood of any business, especially during a period of growth. It’s important to develop a detailed cash flow forecast for at least the next 12 months, updating it regularly. A good rule of thumb is to have 3-6 months of operating expenses saved to prepare for seasonal fluctuations, unplanned events or emergencies. As real estate investors, my husband and I go through these moments of unplanned events frequently, so this was key for us.

Lastly, ensure sufficient funds for 6-12 months of growth. Having enough capital to support your growth for an extended period is critical. This involves calculating your burn rate (the rate at which you're spending money) and considering various funding options if needed, such as reinvesting profits, seeking investors, or exploring business loans. You may also need to plan for slower-than-expected growth or unexpected challenges. It's better to overestimate the funds you'll need than to run short.

Leveraging technology for efficient scaling

In today's digital age, the right tools can make all the difference when scaling your business. That's where QuickBooks has been a game-changer for me. They have been valuable in balancing resources between my creator businesses and property management. QuickBooks has been both my husband’s and my financial go-to, taking care of the number-crunching so we can focus on the big moves that really push our businesses forward. Their features support business growth in several key ways including payroll management, financial reporting and project management

When it comes to payroll management, QuickBooks simplifies the process by automating tax calculation and deductions, facilitating direct deposits, and generating and filing payroll tax forms.

Another key area their products assist in includes financial reporting and forecasting. QuickBooks has been instrumental in data-driven decision-making by generating real-time financial reports, offering customizable reports to track key performance indicators and providing cash flow forecasting tools.

They also provide tools for time tracking and project management which can help when managing a creative team alongside multiple properties that require efficient resource allocation. Some of the features include integrated time tracking for employees and contractors, project budgeting and tracking, and integration with other project management tools.

Building and managing a team for business scaling

Scaling a business often means transitioning from a do-it-yourself mindset to leading a team. I'll be the first to admit that letting go of control was challenging at first. There were moments when I was tempted to jump in and do things myself because I thought it would be faster or better. However, I quickly realized that this approach would limit our growth potential. This mindset shift can be both exciting and challenging. Here's what I've learned along the way:

Hire slow, fire fast – trust me, you don't want to learn this the hard way. Taking your time during the hiring process allows you to find candidates who align not only with the required skills but also with your company’s values, vision, and work ethic. Red flags should never be ignored; if someone isn't the right fit, it’s better to part ways early. It's important to factor in 3-6 month trial periods to ensure new hires blend well with the team and company culture.

Once you’ve built a team, delegate effectively by trusting them with real responsibilities. Start by identifying tasks that don’t require your direct involvement and provide clear instructions. A well-organized orientation folder with job roles, expectations, training videos, and tutorials are great for onboarding new members. To continue growing your team, encourage them to bring their own ideas to the table, celebrate their successes and use mistakes as learning opportunities instead of reasons to take tasks back into your role.

Consistent communication is key to maintaining a strong team dynamic. Establishing a regular rhythm of team meetings and one-on-one check-ins will keep your team connected. I also encourage you to be transparent about your goals and challenges so you can foster trust, and utilize communication and collaborative tools to keep the team in sync.

Remember that building a strong team is an ongoing process. It takes time, but when you get it right, it's the key to scaling your business beyond what you could ever achieve on your own.

Balancing multiple business ventures during scaling

As someone managing both a creative business and real estate investments, I've picked up some tricks along the way. Let's dive into how you can balance it all during a period of growth:

My first and most crucial tip is to prioritize ruthlessly. It’s tempting to want to do everything, but not everything deserves your time and energy. In each of your ventures, apply the 80/20 rule and ask yourself which 20% of your efforts are driving 80% of your results. It's crucial to also learn to say "no" or "not now" to opportunities that don’t align with your core goals. Remember, your time is your most valuable asset – invest it wisely.

Secondly, look for synergies between your ventures. Finding ways for your businesses to support each other can be a game-changer. Leverage shared resources such as office space, tools, or even team members to cross-promote your ventures.

Lastly, don’t be afraid to pause growth in one area to focus on another. Be honest about which venture needs your attention most right now. It's okay to put one business in 'maintenance mode' while you scale another. However, be sure to set clear criteria for when to shift your focus back, and communicate any changes with your team and stakeholders.

Balancing multiple ventures while scaling isn't for the faint of heart. But with the right strategies, it can be an incredibly rewarding journey.

Conclusion

Scaling your business is a journey filled with challenges and rewards. It requires careful planning, the right tools, and a willingness to adapt. Every big business you see today was once small. With the right strategies, tools, and support, you can successfully scale your business. 

I hope these insights help you on your business journey. And if you're looking for a powerful tool to help manage your growing business, I highly recommend exploring what QuickBooks has to offer. It's been instrumental in our growth, and I believe it can help you too.

Wishing you and your business all the best,

Tolani