7 Things Every Growing Business Needs to Monitor to Scale Successfully

Opinions expressed by Entrepreneur contributors are their own.

It’s inspiring to see a business on an upward trajectory, gaining happy customers and making its mark. However, every season of growth presents unique challenges. Through this post, my aim is to provide helpful, no-pressure advice on areas to pay attention to — from financial planning to facility capacity and more. Growing in a sustainable way allows your vision to thrive.

1. Staffing needs

One thing you will want to keep an eye on is your staffing needs if your business has seen some growth recently. As more customers come through your doors or as you take on more projects, you may find yourself needing some extra help around the store or workshop.

Rather than waiting until you feel overwhelmed, it’s smart to think about hiring some part-time or full-time employees before it gets to that point. That way, your new team members can learn the ropes from you and your existing staff so they are ready to help when customers start coming in waves. Don’t be afraid to ask your employees if they have friends or family who might be looking for a job, too. Word of mouth is often the best way to find reliable help.

2. Inventory levels

Another thing to monitor is your inventory levels if more people are buying what you sell. The last thing a growing business wants is to have a customer come in looking for a certain product only to find out you are all out of stock. Keeping close track of what items are selling well and replenishing faster-moving things will help avoid losing sales.

It’s also a good idea to set minimum and maximum levels in your POS system. Doing so ensures you don’t end up with too much of one thing taking up space or too little of a popular item when the demand is there. Let’s say you’re a florist; you will also need to check in with your suppliers to make sure there won’t be any delays getting shipments. A POS system can manage inventory, orders and supplier relationships to meet your customer demand in a timely manner.

3. Additional equipment needs

You also need to consider if your growing business requires any new or additional equipment. As production increases you may find yourself needing more tools, new machinery, more office supplies, updated computers, upgraded software or more storage solutions.

Rather than waiting until the last minute when you really need something, think ahead about what additional equipment investments will help you run more efficiently as more work comes your way. Doing research now on different options and getting price quotes will help you budget for and purchase new gear before it becomes an urgent need.

4. Facility capacity

Another important thing to evaluate if your business is growing is the capacity of your current facility. As you take on more projects or serve more customers, you need to make sure you have enough room to do so comfortably. Take a look at your workspaces, storage areas, parking spaces, seating if applicable and any other areas customers interact with. Are things starting to feel tight? Is your facility layout still efficient for increased needs?

If your business continues growing, you may need to consider options like renting additional space next door, constructing an addition or moving to a larger location entirely. It’s wise to think about space requirements before you outgrow your current facility.

5. Financial projections

With growth also comes the need to adjust your financial projections forward. As more revenue comes in the door, be sure to update your sales forecasts accordingly. But also account for how that additional income affects your expenses. For example, more sales may mean needing to purchase more supplies and materials. It also means you will likely need to pay your employees more to account for overtime or to bring in new hires. Your accounting and bookkeeping software should make it easy to play with these numbers; adjusting financial projections as things grow will only keep your plans realistic.

6. Review processes and procedures

Now is also a good time to review your business’s processes and procedures if growth is happening. With more customers and volume, you will need to make sure you have efficient systems in place.

For example, do your ordering procedures allow for larger and more frequent inventory replenishment? Is your shipping process optimized for increased order amounts? Are your work procedures documented so new employees can jump right in? Do you have a process for handling customer issues or questions as your client base expands? Take time to examine the behind-the-scenes work and ensure your procedures support the realities of a growing operation.

7. Increased marketing efforts

To help sustain the growth your business is experiencing, you will also want to consider stepping up your marketing and brand-building efforts. Just because things are busier now doesn’t mean you should let your advertising and promotion fall by the wayside. In fact, increasing awareness of your company through targeted efforts will help maintain momentum. Boosting your online presence, running new local ads, doing community sponsorships and hosting workshops — these kinds of ongoing marketing activities will attract even more customers your way as the word continues spreading.

As you consider staffing, inventory, equipment and facility needs, just take it one step at a time. Stay true to your vision and values along the way. Lean on your support network when you need guidance, and most importantly, celebrate your wins.

Source link