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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