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May 2018

Four Vital Techniques to Successfully Scale Your Company for Growth

18-LB-549 blog photo
At its outset, a Michigan healthcare staffing company provided contingent staffing for clients’ short- and long-term personnel needs. But its owner knew her company needed to reap greater efficiencies to grow. She altered the company’s business model, changing it into an enterprise providing employees solely for permanent positions. The result was an 80 percent overhead cost reduction, and a far more profitable company.

To position for long-term success, owners must ensure revenue growth outpaces expense growth. That requires scaling operations. Adjusting business models is among ways company owners successfully scale operations. Keep reading to learn four of the most recommended strategies to successfully scale your company for growth.

  • Keep end goal clearly in mind. Successful scalability requires owners take “big picture” views of their ultimate goal. Do they want to build a company to support their life? Or do they wish to create a company they can sell? The end game must be kept in sharp focus to enable successful scaling.
  • Decide how to fuel growth. To effectively scale, owners must determine how they plan to grow. For some, the answer is to gain early investment. Others seek strategic guidance from outside experts to propel their companies to a point where taking on investors or merging with others makes sense.
  • Strive for repeat business. Companies that must regularly find new customers expend far more resources than those enjoying repeat business. To successfully scale operations, owners must plan ways to sell more to current customers, thus growing revenues without continually finding new buyers.
  • Stay open minded on financing. Getting bigger often requires adding physical space or hiring more staff. This requires capital. Gaining scalable operations demands staying creative in how to gain financing.

Keeping an eye on the prize, maintaining a plan and being creative all enhance scalability, ensuring your company has the capacity to grow.

How are you scaling operations for growth?

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Why Small Companies Thrive with Community Banks

Recently, a New Jersey community bank furnished a construction and renovation loan to a nearby historic estate.  The loan helped the estate’s owners build a new ballroom. Working with the bank, the owners gained more than a loan. The bank’s knowledge of the local market and construction industry helped them create a ballroom well matched to the area’s weddings market, ushering in increased lucrative summer bookings. 18-LB-548 blog photo

This a perfect example of why small companies – whether manufacturers, car dealers, tech or law firms, independent stores or others -- thrive working with local community banks. Local market knowhow and willingness to view customers as neighbors, not numbers, help community banks provide intangibles that go beyond lending.

Here’s how community banks help small companies flourish:

  • Community bankers don’t forget that as small companies bloom, so does the nation’s economy. They are, after all, local businesspeople themselves. As a result, small companies are more likely to enjoy a service-oriented partner willing to listen, communicate and lend.
  • Community banks answer to Main Street. Larger banks answer to Wall Street shareholders. However, community banks are deeply engaged in their towns, making them more accessible, knowledgeable and responsive to customers.
  • Timely capital access can spell the contrast between business success and failure. Fast loan decisions help small firms get a leg up on rivals.  Community bank loan decisions are made locally, so lending is often more timely.
  • Because they build relationships with small business customers, community banks are more ready to loan. A 2017 survey by the Federal Reserve Bank of New York found large banks approved just 58 percent of applicants, whereas small banks (many of them community banks) approved 76 percent.

Counsel.  Capital.  Community focus.  All these community bank benefits help small companies thrive. Is yours among those flourishing with help of community banks?

Which community banking benefit is likeliest to help your company bloom?

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