A successful entrepreneur once said, “You never know with these things when you’re trying something new in a business, what can happen—this is all experimental.” Scalability is the ability of a startup or a business to grow or expand into the market scenario. A venture is said to be scalable if it can adapt to a larger workload without compromising performance or losing revenue.
But experiments in businesses can either lead to a successful venture or a gradual devastation of what you’ve built. There is no ‘secret sauce’ that can be added to make your venture a quick hit because it’s all about undertaking and managing the right risks. To make it scalable, you need to learn how to market your product or service and create sales. You have to take courageous decisions, consider endless possibilities, unleash your dream plan, that might result in profits.
However, there are certain actionable recommendations that can catapult your business venture or startup towards the right path of success. Here are the 5 steps that can help in accelerating the growth of your business.
Vision To Believe
- Do you believe in growing your company into something much larger than it is today?
Businesses hinge on the ideas and a belief of its success. A vision statement creates guidance, articulates goals and conveys the plan for the future of the business to everyone that is associated with it. Creating a clear vision and imparting that vision successfully is an important aspect in scaling up your venture.
Courage and Commitment to Growth
- Are your plans focussed on the vision of the evolution of the venture?
Most ventures survive the starting phase but collapse as they try to scale up. This happens because most of them lack the will and ambition to grow. The need to want their business to grow, commitment towards that growth and development of realistic targets along with chalking out a concrete action plan can ensure a shot at success.
Core Competence Analysis
- Do you identify your major growth areas, your risks and other factors that can increase its scalability?
The X-factor of a venture lies in its core competencies. Core competencies are defined as the the specific set of skills or production techniques that deliver additional value of quality to its customers and makes the venture stand-out in the market. Identification of these core competencies will lead to investments in the focused growth areas of the venture and will enable the venture to excel in the contrivance of core products.
- How can a business scale if no one in the target audience knows about it?
Being adaptive to the market changes will enable you to experiment and grow various approaches. An agile and flexible approach to development will help you grow more quickly. We’re currently in the era of internet-fame and being and analyzing the direction of the market and switching directions can provide the acceleration. Becoming a part of the pop culture or the current trend in accordance with your policies will help your venture to soar high in the market because the trends sell.
Investments and Cash Flow
- A business is nothing without its revenue, are you backed up enough?
Statistics show, cash flow shortages is one of the major reasons why most businesses collapse. Simply profitable isn’t enough to justify expansions. The exact quantitative data and numbers representing profit should be considered as a deciding factor. Creating a recurring or repeated revenue so the trend is predictable, is an easy way of retaining cash flow.
Scalability requires both, an action plan and a mindset. It sure needs the right systems and processes, people, and plans but a progressive mindset, to begin with. You need to create an inspirational vision, recruit your best team behind that vision and generate a concrete process with a backed up revenue.
At AU Small Finance Bank, we believe in nurturing your venture by understanding your truest potential and providing secured business loans for small and medium scale businesses and strengthen it. These MSME Business are provided with a single line of credit for meeting the needs of the venture in any form. It can be used as a working capital as well as for long-term requirements. It can cater to technology up-gradation and inducing cash flow, and peak time requirements, to name a few. Every business starts from the scratch and they lack a long line of business credit to back up their business. Therefore, these secured buisness loans by AU becomes a blessing in disguise.
Read more about Business banking
Know more about the GST online (goods and service tax)