How to Scale a Small Business?

Running a growing business is about more than just boosting sales and making money. In fact, even if you have a great product, it doesn’t mean your company will thrive—over 80% of businesses still fail.

To successfully scale a business, owners need the right strategies, a strong team, and efficient processes to handle new customers, products, and services.

While it’s tempting to dream of becoming an overnight success, true growth comes from creating and following a long-term plan. No matter how big your business is, knowing what scaling really means and figuring out practical steps to get there are essential for achieving your goals.

What does it mean to scale a business?

When talking about business expansion, people often mix up the terms “growth” and “scale.” While they’re related, they actually mean different things.

Growth is about increasing revenue at the same pace as adding resources—like new team members, technology, or funding when entering new markets. Scaling, on the other hand, means finding smarter ways to grow, so your revenue increases much faster than your resources and costs.

To scale your business successfully, you need to plan carefully. Did you know that about 20% of new businesses fail within two years? That number jumps to 45% in five years and 65% within a decade.

Here are some key points to keep in mind when scaling:

Company Goals

When you set goals for scaling your business, use the SMART framework to make them clear and achievable. Your goals should be:

• Specific: Clearly say what you want to achieve.
• Measurable: Define how you’ll track progress.
• Achievable: Make sure your goals are realistic.
• Relevant: Align your goals with your overall business mission and values.
• Time-bound: Set a deadline for reaching your goal.

While focusing on both short- and long-term goals, be careful not to rush. If you focus too much on quick wins, you might overlook what you need for long-term success.

Think about both outcome and process goals. Outcome goals are what you want to achieve, while process goals are the steps to get there. For instance, if your goal is to double customer retention (specific and measurable), figure out actionable steps to enhance customer experience (achievable and relevant) within a set timeframe (time-bound).

Stay flexible with your goals, and let your team adjust strategies if market conditions change. Regularly review and update your SMART goals to ensure they align with your scaling objectives and the current business landscape.

Number of Team Members

Some businesses think they need to double their workforce if they want to double their revenue. But that’s not usually a sustainable approach, especially if growth slows down. Instead of just adding more people, focus on hiring skilled leaders who can motivate and guide your team. Bring in talented individuals with the specific skills you need to hit your goals.

Internal Processes

A big part of scaling successfully is having repeatable daily processes and efficient workflows. Here’s how to do that:

1. Identify Key Processes: List all the major processes in your business, from onboarding new team members to invoicing customers.
2. Map Current Processes: Use flowcharts or diagrams to visualize each step. This will help you spot inefficiencies or bottlenecks.
3. Analyze for Scalability: Look at each process and ask questions like:

• Can this be automated?
• Are there steps we don’t need?
• How will this process handle more volume?

1. Redesign for Efficiency: Based on your analysis, tweak your processes to make them smoother and more scalable.
2. Document and Standardize: Create clear, easy-to-follow documentation for all processes to ensure everyone is on the same page.
3. Implement Automation: Use tools to automate repetitive tasks. Some good options are:

• Zapier for connecting different apps
• Trello for project management
• Asana for team collaboration
• ProcessMaker for business process management

1. Monitor and Iterate: Regularly check and update your processes as your business grows.

Having clear, efficient processes makes a big difference in your ability to scale. It saves time on manual tasks, makes onboarding new team members easier, and keeps everything consistent.

Remember, letting each team member create their own processes isn’t scalable. It can lead to inefficiencies and make growth tougher. By mapping, analyzing, and improving your processes, you build a solid foundation for sustainable scaling.

Common Business Scaling Mistakes

Here are some common mistakes businesses make when scaling:

• Scaling too quickly
• Focusing on short-term goals instead of long-term success
• Losing sight of what’s important
• Hiring too many people instead of focusing on quality
• Ignoring the need for efficient processes
• Lacking flexibility

In the next sections, we’ll give you detailed tips on how to avoid these pitfalls and scale your business the right way.

10 strategies for scaling a business

Every business is unique, but those that successfully grow often share similar best practices. Here are ten tips to help you create an effective scaling strategy:

1. Focus on Increasing Sales
   Boosting sales is a top priority for any business looking to expand. This can mean attracting new customers or increasing revenue from your existing ones. Often, it’s cheaper to deepen relationships with current customers than to find new ones—acquiring a new customer can cost five to six times more than keeping the ones you have. To scale effectively, think of ways to increase sales while maximizing profits and minimizing resources.Here are some tips to increase sales:
   • Identify your target market
   • Understand customer behavior
   • Act on customer feedback
   • Build a skilled sales team
   • Create an effective marketing plan
   • Use CRM software to manage leads and relationships
   • Refine your messaging
   Many of these strategies also help improve customer support, ensuring you maintain great service as you grow. CRM software can track customer interactions and improve service, retention, and sales. Some top CRM options include:
   • Salesforce: Great for businesses of all sizes.
   • HubSpot CRM: Offers a free version, perfect for small businesses.
   • Zoho CRM: Affordable with many features.
2. Invest in Technology
   The right technology can automate many tasks, freeing up your team to focus on broader goals. This can lead to better results with the staff you already have. Consider technology for automating:
   • Onboarding new team members
   • Accounting and payroll
   • Customer relationship management
   • Project management
   • Appointment scheduling
   Helpful tools include:
   • ChatGPT: Efficient for drafting documents and templates. Pros include versatility and user-friendliness, but be aware of potential accuracy issues.
   • Jasper: Great for marketing content but requires a subscription and has a learning curve.
   • Copy.ai: Useful for job descriptions and customer responses, but it may produce generic content without careful customization.
   When choosing tech, look for ease of use, customer support, and cost.
3. Build Your Team Wisely
   As you plan your growth, think about the hard skills (like coding and project management) and soft skills (like communication) you need. Identify any gaps in your current team. Look for leaders who show active listening and problem-solving abilities.Tips for hiring:
   • Clearly define job requirements
   • Use assessments for hard skills
   • Include behavioral questions to assess soft skills
   • Consider cultural fit
   • Use employee referrals
   A good interview process might involve screening resumes, skills assessments, in-depth interviews, and checking references.
4. Get External Help
   In the early days, your team might wear many hats, but this can lead to burnout. As you grow, consider outsourcing tasks to skilled specialists. Many businesses are now hiring independent professionals for flexibility and cost savings. You can find talented freelancers through platforms like Enterprise, which simplifies the hiring process.
5. Set Realistic Goals
   Successful scaling requires a balance between challenging and achievable goals. Organize a workshop to align your team’s vision and set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. Break these down into manageable milestones and assign responsibilities. Remember to consider seasonality and adjust your timelines accordingly. For example, if you want a 50% sales increase in a year, set quarterly targets to keep your team motivated.
6. Develop Management Skills
   Effective managers can inspire teams and drive results. Identify key management skills like strategic planning and time management. Consider training programs and assessment tools to help managers improve and align with your scaling goals.
7. Narrow Your Focus
   While offering a wide range of products can bring in revenue, it can also hinder long-term growth. Identify and target a niche market that fits your strengths. Use market research to understand your customers’ needs and tailor your solutions accordingly.
8. Enhance Financial Planning
   Regularly reviewing your financial statements is vital for scaling. Analyze trends to make informed decisions. When seeking funding, consider options like venture capital, business loans, angel investors, or crowdfunding. Create a strong pitch deck to attract investors.
9. Update Market Analysis
   Conduct thorough market research by identifying trends, analyzing competitors, and gathering customer feedback. Segment your market and develop a strong value proposition to effectively position your brand.
10. Conduct a Risk Assessment
    Identify potential risks, perform a SWOT analysis, and prioritize them based on likelihood and impact. Develop strategies to mitigate risks and create contingency plans. Regularly review your risk assessment to stay prepared.

By following these strategies, you can minimize potential threats and build a more resilient, scalable business.

Also Read: 18 Strategies to Close a Sale (With Examples)

Scale your business with Upwork

Scaling a business is all about creating a clear plan for the future. You want to set important milestones for one, five, and even ten years down the road. It’s also key to make sure your short-term goals align with your long-term vision so you can grow at a steady pace. By keeping your big picture and company vision in mind and bringing the right team together, you’ll be well-equipped for successful scaling.

Upwork can help you find and manage independent professionals with the skills you need to grow your business. With our Enterprise service, we’ll work together to create a strong talent strategy that really makes a difference for your success.