5 tips for scaling responsibly

All small businesses have one common goal in mind: growth. But growing your business isn’t as simple as making more money. You have several priorities and values to keep in mind including customer relationships, quality employees and consistent product offerings. You also need to balance your growth plans with your existing revenue. Before you attempt any type of expansion, you need to formulate a sustainable growth checklist.

Here are five things to check off your to-do list before you begin to scale up your business:

Find out what your customers want

What are your current and potential customers really looking for? To find out, you’ll need to conduct customer surveys and record customer requests. You can even record phone and playback customer phone conversations to get a better feel for what your customers are saying. Look for patterns and make sure you’re growing only the parts of your business that customers demand. Take customer feedback seriously and use it wisely.

Prepare more space, staff and costs

Take the time to calculate the full cost of your expansion plan before you forge full speed ahead. This includes added rent or mortgage costs, new staff salaries and expanded inventory. Consider your finances in a comprehensive view.

Boost profit margins

Put your focus on products and services with the highest profit margin. You can then use lower-profit products to entice customers to make high-profit purchases. This allows you to increase profitability without adding to your customer base or product offerings.

Build relationships

Cultivate your relationships with bankers and investors so they can get to know your business goals. Meet with them regularly to fill them in on any opportunities your business pursues. You should also work to build partnerships with other businesses and consultants in the industry so you can stretch your resources until you’re ready to hire more staff.

Spend money in the right places

Obtaining funds is key to any growth plan, but it’s also important to make sure you’re spending wisely. If you’re making a long-term investment, such as purchasing new equipment or buying property, consider the most strategic way to finance. There’s a delicate relationship between cash and growth, so be sure to spend money the right way.

Growing your business can be complicated, but with the right plan in place you’ll be on your way to greatness. Once you check these items off your list, it’s up to you to take action.