How To Scale A Business: Are You Using Leverage?
How to scale a business is a common question I get when it comes to building a home business or traditional business, and one key to scaling a business is applying leverage.
Capitalizing on trends is one effective strategy for how to scale a business
One thing I learned a long time ago when I was first starting my business career was that one sure way to build a successful business is to capitalize on trends. An effective way of scaling a business is to get in front of a huge expanding market.
A common mistake people make while building a business is that people choose something they are passionate about, which is good, but regardless about how passionate someone is about it, most people aren’t.
Not that these business ideas are bad or they can’t be successful, but more so right from the start these people are trying to scale a business on an idea that doesn’t have much interest.
I see a lot of people struggles with scaling their business because they jump into something they are passionate about like take pet products for example, but then the second they choose that niche they eliminate everyone who doesn’t have pets.
Again nothing wrong with specializing, but I find people do this a lot. Another example could be leggings, I’m sure they are great products, but it immediately eliminates most of the male population on earth.
Being passionate about what you offer is certainly great, but when there is massive competition in the same market and it’s small and specialized it makes it hard to build a massive business.
Using systems for leverage is another key factor for how to scale a business
I find a lot of people who are wanting to scale their business or grow it into a very large business, but they don’t have any systems in place to leverage their time or efforts. Take for example a kiosk in a mall, what would be an effective way of scaling your business if you had one of these?
This business could certainly create a profit, however it’s very unlikely that this business alone as a kiosk in a mall would generate multi-million dollar years of revenue from foot traffic alone.
This is where using systems to leverage a business becomes very important for scaling a business. In this situation a great solution for how to scale a business, would be to implement an online marketing strategy to increase sales and exposure.
If you have a great product or service but no one knows about it, it is going to be hard to generate a lot of revenue. This is where building your online presence becomes increasingly important.
In this scenario even if you weren’t going to take advantage of trends at least you can build a strong online presence and build awareness of your business.
How to scale a business: Build your audience
Another major factor that that’s helpful for scaling your business is developing an audience. People often get fearful if there are major players in your space already. Now this isn’t a saturated market, but just a few well known leaders.
Do you have an abundant mentality or a scarcity mentality? Many people come into business with a scarcity mentality and they feel that if someone else is successful they already took all the good people.
Certainly there is a bit of truth to that, but in reality some people won’t resonate with that leader as much as they will with you. When you build your audience and focus on growing a following of people that know, like, and trust you, it is a great way to scale your business.
The larger your audience gets the more likely there will be people who will become raving fans that want to work with you and do business with you. Choose a target market you can serve with your products and service, and then start growing that audience as an effective way how to scale your business.
Does your business have a consumable product?
Scaling a business can be tough if repeat customers and consumers are a rare occurrence. There’s nothing wrong with selling something that people rarely consume on a regular basis, but it’s going to make it harder to scale your business.
For example there are a lot of people who sell real estate. Certainly you can make very large commissions when you sell a home, but how often will the same person buy a new home?
Perhaps if they are a real estate investor they might buy a home every year, potentially more, but for the average consumer, most people buy a home only a few times throughout their lifetime, if even more than once. So the chance of you getting repeat buyers goes dramatically down.
This is why scaling a business quickly often requires some sort of consumable product or membership based product. If you owned a gym, you can sell a membership once, but continue to get paid month in month out.
This allows you to get paid on the initial effort as well as every month after, as long as they have their membership, which allows you to spend your time on acquiring new customers. This can make it easier to scale a business, because you will get those repeat customers without the extra effort.
When choosing a network marketing business, home business, or even traditional business, it is ideal to have some sort of product or service that people continue to purchase over and over again. If you don’t you end up only being as good as your last sale.
You can certainly still scale a business without a consumable product or service. Unfortunately, you’ll need people at work or systems at work to leverage your time. Again, scaling your business with a consumable product or service along side people and systems at work is even better.
Scaling your business through engaging your audience
Another step you can take towards scaling your business is by engaging your audience that you are building. There are lots of ways that you can engage with your audience. You could blog, write books, do videos, webinars, the list could go on an on.
It’s not as much the strategy you specifically choose, but more so that you simply do some sort of engaging with your audience on a consistent basis. Video marketing is a strategy I do recommend using though as it is one of the fastest ways to build trust, rapport, and a relationship with your audience.
Why does engaging with your audience you are building matter for scaling a business? With a group of raving fans your content will spread without spending advertising dollars.
This is one area people either ignore or don’t know where to begin with when they are looking to scale a business. If that’s you, be sure to check out this free training on how to set up a profitable lead generation system for your business as an effective strategy for scaling your business.
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