All modern eCommerce business projects started with a single enterprise, shop, site. Thanks to the efforts of the creators of the project, the project grew, and competitors remained at the level of local institutions. So why did the first and did not agree with the second? How to scale the business correctly, you will find out in our article.
What is the scaling? When you can start to scale your business
Scaling up is expansion. It should not be confused with the introduction of new sections within the business. For example, expanding the assortment of the store is not scaling up, but opening the second and third stores in neighboring areas – this is what it is. How do you know that the very moment has already come and you can start to conquer the markets? There are several conditions:
- You have a well-established business that works without your involvement. There is free time to think about your development strategy, find partners and investments, which are below;
- There is a starting capital. A bank account — an amount comparable to the value of your current business. Well, if there are investors ready to invest in the project;
- Have experience of opening and managing at least two or more branches. If you have opened one store once in your life, it is too early to think about scaling up. Open a few more points and try to work in this format for some time. So you get used to multitasking and working on several fronts;
- You are doing a really good product and you have something to offer the market. Competitors don’t slumber – with the expansion of business, the competition will increase exponentially. We will not be able to pull up the quality of the product as we go along – we will not have enough resources.
One of the factors of scaling: you are doing a really good product and you have something to offer the market
For example, you opened a bar. You work with suppliers, do advertising, and at weekends you get behind the bar to help the bartender cope with the flow of customers. It’s going well, there are a lot of visitors and you decide to open a bar in the neighborhood.
To save money, you continue to work at the same pace, but the load is added to the effort to open a new point. Looking for a place, watching the equipment, hiring new employees and as a result, you do not have time to do anything. Businesses in a working institution start to slip, and the opening of a new point is delayed. At some point, everything collapses.
How did it suppose to be?
The first thing we had to do was to hire a manager to work at the bar and focus on the new cafe. Having opened the second institution and having appointed a manager there, you had to manage the business through delegation of authority. Finally, it’s important to optimize your business with software like Magento 2 Advanced Product Options, so you and your managers won’t waste their time. You would have gained experience in managing branches, saved time and were ready for the next stage.
Where to start
- As it always happens, you have to start with your loved one. First, scale your brain first. You need to change the scale and format of your thinking and take it to a new level. Believe me, you can’t build an empire if you think like a store manager. The author of these lines met the directors, who checked the shelf life of food in the refrigerator with employees and counted rolls of toilet paper. Such a serious business is contraindicated. For this purpose, it is necessary to visit corresponding courses, seminars, and conferences. There will be motivation, knowledge, and at the same time, you can get acquainted with the right people. You will start thinking about other categories – more globally. Now you can move on to the next stage.
- Think of a strategy. The big road begins with the first step. Do not try to get everything at once – move gradually, distributing resources wisely. If you work well for a city with a population of one hundred thousand people – go to the regional level. If you have mastered the area – move to the neighboring ones. If you have learned to work in your own country, try to master the neighboring countries. Do not try to jump over the stairs – each stage provides a base for mastering the next one.
- Assemble a great team. Building a network business alone will not work. You need a team of specialists – professionals in their field, in addition to real enthusiasts. It is better if these people grew up inside the company, not outside. They know each other and the specifics of the case. Think about the form of ownership and the system of taxation.
- Now look for investors. Serious investments will not be required. Loans, loans, shares – consider all options and choose one or more suitable ones. Start building a network of partners based on local specifics.