Scaling a business isn’t easy, and there are a bunch of mistakes that newcomers make along the way. But with the right strategies, team, and steps in place, then the journey to the top will be smoother.
1Your product sucks
You see, if what you’re selling is of low value, quality, or demand, why would anyone buy it?
If there’s no demand, there’s no money coming in. And if there’s no money coming in… then your product is bad. A harsh reality, but the sooner you start to realize this, the faster you can tackle your areas of opportunity and grow.
The number one rule in selling is that you need to believe that your product or service is the #1 thing. And if it’s not, then something has to change.
The truth is that you can’t scale properly if you have no demand for what your business has to offer.
2High employee turnover
If your business has a revolving door, sooner or later, your customers are going to find out.
And if you have a high turnover rate, that usually means something isn’t working with the current system that’s in place.
A lot of companies try to scale without realizing that:
- Company culture is that important
- People move the business, not the other way around
So, if you want to hire the right people and keep the good ones, start with knowing exactly who you want on your team.
You can’t scale without a team, and you won’t scale without good people.
You often hear me talk about stretching the rubber band. But don’t confuse that with stretching the rubber band of the business.
You see, a business isn’t like a person. And when you stretch a team member, they’re able to bounce back faster than an entire organization can.
So, a big example of this is when companies have a seasonal growth spurt in business. Then, they buy all of this material, and then the demand slips…
Now, they have all of this inventory just sitting there.
Alternatively, a company could be ill-prepped for a seasonal surge. They actually do not have the necessary products in stock to deliver on service. And that alone can take a hit on your business and set you back on scaling.
4Cash flow fiasco
What happens when you run out of cash? You start to crash. And eventually, you close up shop.
You want to ensure that you have enough cash flow to keep you afloat in case anything happens in your business or the world.
Take the recent pandemic, for instance. The world stopped and many businesses had to close down because they didn’t have the proper infrastructure in place to keep them afloat.
But since I made sure my business had enough cash flow to keep the lights on and still pay all of our bills and vendors on time — we made it.
If you want to learn how to tackle these things and come out on top, then join us for our upcoming 10X360. We’ll teach you everything you need to know about how to scale your business without the bruises and hiccups along the way.
With proven strategies and tried-and-true processes, we can help you implement a 90-day action plan that will increase your profits in 12 months.