One of the most important decisions that small-business owners can make is whether or not to scale their business. Scaling is the deliberate commitment to expanding the business through a combination of personal, market and product strategies that provide new opportunities for expansion and profit.
Broadly speaking, there are three major components of a successful scaling. They are:
- The wishes and capabilities of the owner/manager.
- The existence of an opportunity for a sustainable growth business.
- The capacity to develop the structure and process for growth.
Let’s take each area in turn and show how to develop an effective plan for scaling and pursuing new challenges and opportunities.
The wishes and capabilities of the owner/manager
Owner/managers must initially review their mental model for their long-term objectives and the desired level of personal achievement and associated risk. It must be clear that these processes can involve both changes in the desired outcome and the work to be done to achieve it. A statement of the expected rewards both extrinsic (financial, organizational) and intrinsic (respect, admiration) should be developed. Personal resources such a willingness and desire to learn, and perhaps even a desire to leave a legacy, can all be part of the wishes and capabilities of an owner/manager.
The existence of an opportunity for a sustainable growth…