Every business needs to grow. This allows the company to occupy a leading position in the market. A large enterprise is becoming more resistant to the effects of negative environmental factors. For this, business scaling is carried out. There are several basic ways to develop a company. They will be described later.
Features of scaling
Business scaling services in Krasnodar, Moscow, St. Petersburg and other cities of our country are provided by many companies. There are many trainings, training programs that help businessmen to master the theory of managing their companies.
The scaling procedure can be done in several ways. There are different approaches to expanding a business. Based on world experience in this area, the most common development mechanisms for companies in various industries have appeared. However, it is highly discouraged to make decisions based on your personal beliefs and concepts. Business does not like unjustified risk. Only the right actions allow organizations to maintain leadership positions in the industry.
The company provides a stable profit when it quickly responds to changing environmental conditions. At the same time, large organizations can easily avoid the negative effects of adverse environmental factors. Therefore, a startup needs to be properly scaled.
Expansion paths
Today, there are many ways to scale your organization. To do this, go one of several ways. Most often, the owners of a small startup start to develop new distribution channels, develop and manufacture new products. Another popular way to scale is to clone your business. This category includes licensing or franchising.
Some organizations decide to expand by conducting aggressive marketing policies, changing sales strategies. It is also an effective method for optimizing business processes, developing and implementing innovations.
Various trainings, programs and trainings allow you to choose the appropriate way to expand the company. They are conducted by world-class companies, for example, SalePlane Academy of Business Scaling, as well as regional organizations, for example, Like Center (Krasnodar). The experience of such companies allows you to develop the right strategy.
Mastering new methods and sales channels
Business scaling (in Krasnodar, Yekaterinburg, Moscow and other cities of our country - it does not matter) is carried out in different ways. This takes into account the specifics of a particular market. There are companies that are of regional importance. Their products cannot reach the all-Russian or world level. To take a place in such markets, the development of new sales channels or products that were not previously produced by a particular company is being conducted. To do this, the company expands its sales territories by selling via the Internet, in the markets of large cities throughout the country, etc. The company can also direct its resources to occupying neighboring niches in the market, attracting new partners and customers.
The company may also revise its sales system. To do this, changes are being made in ways of motivating sellers, a customer base is being formed, and discount systems are being offered. Also, companies develop offers for buyers of different market segments in several price categories, increase the amount of the average check, etc.
Business cloning
SalePlane's reviews of the Academy of Business Scaling show the company's great experience in conducting expansion through cloning. At the same time, the organization represented is working in the field of frechasing. Business cloning can also be done through licensing.
When conducting a franchise, other companies are given the right to work under an existing brand. The license gives the right to another organization to have at its disposal a ready-made business model. At the same time, you can upgrade such a business model as you wish.
The franchise model requires that the business be ready for further expansion. For this, a sufficient number of own branches should be open. This demonstrates to third parties the viability of the existing organization model. The franchisor does not guarantee the franchisee profitability of the business concept.
Franchise Popularity
Cloning is one of the most popular ways to scale your retail business. “We create franchising in 45 days” - this statement can be found at SalePlane. And this is not an exaggeration. Franchising has many advantages. Therefore, in most cases it is chosen to expand the business.
The franchise allows you to create a wide regional network with a minimum level of initial investment. At the same time, they conclude agreements with suppliers on optimal conditions. This approach to expanding business attracts new franchisee ideas.
One of the main problems of this expansion path is the control over new representations, which are opened using the presented model. In this case, the partner can take the main idea of the original company and pass it off as his own. After all, by concluding a franchising agreement, he gets ownership of the brand and production technology. Therefore, when concluding such an agreement, you need to carefully think through all the details by contacting an experienced specialist.
Aggressive marketing
There are many ways to scale a business. Consulting, franchising (the scale in this case can be achieved at the lowest cost) are not the only popular ways to expand a business. A popular way is to conduct aggressive marketing. This method can also help prepare a small startup for franchise agreements.
Aggressive marketing involves the allocation of a large amount of money for advertising, increasing the impact on the target audience. Moreover, the company acts sequentially. The aggressiveness of the method is to conduct direct advertising and the effect with its help on the minds of buyers. They choose the product that they know about. In this case, it is necessary to conduct a creative advertising campaign.
The company behaves obsessively, prompting customers to purchase their products. It should be noted that the result of such an effect is instantaneous and short-term. At the same time, the consequences of such an aggressive effect can be both positive and negative. In the second case, the target audience expresses its dissatisfaction with such an impact, in principle refusing to purchase the imposed goods.
Sales Growth Strategies
Each scaling unit in a business must make adequate decisions about the need for expansion, as well as the selection of the right techniques. Before conducting business cloning or aggressive marketing, the company must demonstrate a stable profit. She must pursue a policy to increase her profit margins.
To do this, use one of two strategies to increase sales. The first of these is improving the sales process. At the same time, the cost of production increases. Brand and sound marketing policies play an important role in this process.
The second strategy involves cost reduction.At the same time, the technological cycle is being revised. Production costs are reduced through the introduction of modern methods, materials, innovations. More favorable contracts are concluded with suppliers of raw materials. This allows you to increase production, offer consumers more profitable products.
Business Process Optimization
Business scaling can be carried out by optimizing management processes, production, etc. This procedure is carried out in several stages. First, the company must audit the current business structure.
Further, on the basis of the data obtained, a conclusion is drawn on the conformity of the company with strategic objectives. If inconsistencies are found, decisions are made, and sets of measures are developed to eliminate the negative factors of the organization's development. In this case, problem areas of production, sales and logistics are identified.
New work regulations are being created, changes are being made to the current structure of the company. At the same time, it is important to constantly monitor the implementation of tasks to achieve marketing goals.
It is extremely important during the expansion of your business to develop the communicative, organizational abilities of the organization, as well as its strategic thinking.
When to expand a business?
They begin to direct investments in scaling a business at a certain point in the company's activity. It is important to start this procedure not too early and not too late. First, an analysis of the growth rate of the company. In this case, take into account the characteristics of the industry in which the company operates.
American economists agree that thinking about expanding their business is at a stage when the level of profit growth is about 6% per week. But it’s best to start such an activity when the company shows a 10% profit growth per week.
You need to think big. Decisions to expand the network need to be made after a careful analysis of their capabilities and the conditions of the business environment. In this case, you can increase income at times. For this, it is important to conduct a comprehensive analysis, on the basis of which strategic decisions are made. It is important to choose the best ways to expand your business in the current environment.
Important Tips
Business scaling is carried out at a certain stage of the company’s activities. To prepare it for expansion, it is necessary to work on improving the image of the organization. In this case, you need to invest in employees. The success of the enterprise will depend on their work.
The professionalism of employees can say a lot about the company itself. They should be able to work in a team, attracting new customers, concluding profitable deals. Such a team arouses customer interest in the organization.
Scale of thinking
To create a successful company that can reach its influence not only regional, but also federal, foreign markets, you need to think big. Do not overly focus on the little things. For example, you should not waste precious time establishing the ideal discipline of employees. It is easier to hold it in negotiations with strategic partners.
Knowing how to scale a business, you can create a successful company that will be profitable and stable.