January 9, 2009
| Category: Business Advice
| Tags: Small Business Tips
In running a business, whether startup or established, it is important to find out if it is scalable or capable of expansion over the long haul. It is a serious mistake to assume that your business will remain on the same level.
If you’re a marketing consultant, for instance, your business may start slow with one or two clients. Over time, assuming you’re good, your firm will be flooded with testimonials and referrals. These factors will attract more and more customers. Perhaps more than you can handle.
Though this is the ultimate fantasy of every business man, it can turn to a horrible nightmare if your business is not geared up for expansion. You may end up wrecking your work-life balance for you have to work long hours and during weekends to catch up with your clients’ needs and whims. To make matters worse, dividing your time to so many clients may negatively affect your output.
Before you even get to that point of no return, consider asking these questions to check if your business is scalable:
1. Can I exploit the skills of other people in exchange for money? As your business expands, time becomes a scarcity. Your alternative is to hire the right people or partner with another successful person in your industry to duplicate your success.
2. Am I equipped with the right technology? This is crucial for businesses relying heavily on machines such as video/photo editing, internet marketing, and graphic design firms. When investing in equipment, always consider its capability for upgrades.
3. Will I enjoy the fruits of my labor? Otherwise, what’s the use of all the money in the world, right?
To borrow the words of author Stephen Covey in his infamous book, 7 Basic Habits of Highly Effective People, you should always begin with the end in mind. So go ahead, take a look at your business and see if you’re ready to a profitable future.
