According to expert entrepreneur Michael Giannulis, there are several dynamic and numbered variables of a business you need to experiment with to get the best results. It is all about the risk, and if you can pull it off, the reward can be huge. Keep in mind it is all about making mistakes to learn things the hard way, following the passion, and planning at the right time to get the best results.
Mike Giannulis on the current landscape of business
According to the Bureau of Labor Statistics, about 50% of businesses fail within the first four years of inception. Only two out of three companies survive more than ten years. However, if you are looking for a recipe for success, a formula for the venture’s longevity, you need to look at scaling your business processes. Scaling creates a platform for your business to support growth. But the question is, when is the right time to start scaling?
With that in mind, here are five signs to tell you that your business requires scaling.
Are you turning down potential opportunities?
Building a customer base is vital to the stability of the business. The customer base is the primary support that allows the expansion and creates income. However, as is the nature of the company, the clientele keeps growing. The ever-increasing baseline will, in-time, certainly overwhelm the workforce and the platforms in place. If you are forced to turn down customers and clients due to lack of inventory, employees, or time, it is time to scale up.
Have you already surpassed your previous goals?
The completion of targets and goals defines business success. With enough personal data and future forecasts, you can estimate the eventual growth of the venture. This data allows the setting of newer objectives for the future. It is one thing not to meet the objectives, which some can consider a failure, but what if you have overshot your goals due to unforeseen success? If you are comfortably reaching your goals, then it is time to scale up as you do not challenge yourself enough.
Do you have a healthy cash flow?
Being profitable doesn’t justify expansion. Profitable is a qualitative measure, but the exact quantitative figure is the main deciding factor. Numbers will help you to predict future revenue, future profits, costs as well as stability. If you are looking to create a reliable forecast, you need a strong understanding of your business model and performance record. Allow yourself to be flexible as well as adaptable when performing the accounting planning and prediction. Always plan for the worst, but keep the good work to achieve the best. Watch for the results, and if you see the difference between the worst and the best results is narrow, it is time to scale up.
Do you have a reliable infrastructure?
If you have proven products that always sell and you have the infrastructure in place, then you should look to scale your business processes as soon as possible. Before you can even think about growth, you need to ask yourself these two vital questions. Make sure of the staffing and assort specific roles to everyone, which will boost performance.
If you are experiencing any of the above, then it is time to scale your business processes.