Business growth: 4 tips for scaling smart
Scaling goes hand-in-hand with cash flow as one of the major reasons for business financing.
This is according to the findings of The Messy Middle, a report on South Africa’s medium-sized businesses, created by Genfin Business Finance.
Scaling your business is one of the most exciting yet challenging things you’ll ever do as an owner or leadership team, says Nicholas Thiede, co-founder of ScaleUp Company SA, who was one of the experts interviewed for the report.
He says the good news is that scaling isn’t impossible – it just requires a different mind-set and strategy than what got you here.
So, what are the key scaling hurdles, and how can you overcome them?
Managing complexity
When businesses start, things are (relatively) simple.
The founder or founding team and a handful of staff are all wearing multiple hats and getting stuff done.
As the business grows though, complexity starts to creep in.
Suddenly, everyone is also the HR manager, head of sales and part-time accountant.
At this stage, the switch from doing to managing is crucial.
Roles are shifting – and that’s a good thing!
Building systems and processes is the way out of chaos.
It’s time to let go of micromanaging every detail and set up frameworks that empower the team to handle things.
Start small: Clarify roles, set clear expectations and create basic routines for meetings and reporting.
Tightening cash flow
Growth eats cash.
More customers mean more inventory, more staff and more expenses.
Suddenly, your cash flow feels like it’s on life support.
Cash is the oxygen of your business, and without it, growth comes to a screeching halt.
Be proactive. Focus on improving the cash conversion cycle.
Can you get paid faster?
Can you reduce your inventory costs?
What about delaying payments to suppliers without damaging relationships?
These tweaks can make a big difference.
Attracting and retaining talent
Finding good people is always a challenge, but when you’re growing, it becomes even harder.
As you scale, you’ll find that you need more specialised roles, and the stakes get higher.
A great team can help you overcome growing pains, but the wrong hires can seriously set you back.
Get strategic about recruitment.
Focus on hiring people who aren’t only skilled but also fit your culture.
And once they’re in, develop your team with training and growth opportunities.
You want a team that can grow with your business, not just clock in and out.
Ask yourself: Would you enthusiastically rehire everyone on your team? If not, it’s time to make some changes.
Remember, scaling is a journey.
Focus on getting your people, strategy, execution and cash right, and you’ll have a solid foundation for growth.
Scaling isn’t just about getting bigger – it’s about getting better, stronger and more sustainable.
Four tips to help you scale smart
1. Have a clear strategy
If you asked your team what your business stands for and where it’s going, would they all give you the same answer?
If not, it’s time to clarify your vision.
Keep your strategy simple, focused and easy to remember – complicated plans usually gather dust rather than results.
2. Execute and communicate well
Good ideas are useless without great execution.
This is where discipline comes in.
Set clear priorities for your team, track progress and build a regular rhythm for meetings and communication.
Start with daily and weekly check-ins to keep everyone aligned and on-task.
3. Simplify operations
Business growth brings complexity, which can kill productivity.
Streamline your processes and keep things simple.
Your business will grow more quickly when it’s easy to run.
4. Embrace technology
Automation is your friend.
Use tech to streamline operations, manage customer relationships and optimise internal processes.
The more you can automate, the more time you’ll have to focus on strategy.
For more AI insights and tips on how to build a more financially stable, adaptable and resilient business, download The Messy Middle report, created by Genfin Business Finance, for free.
Genfin is a proudly South African lender providing flexible, unsecured business funding tailored to meet the unique needs of small and medium-sized businesses.
As a credible and trusted partner, we focus on responsible and sustainable lending, empowering businesses to achieve lasting growth and success.
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