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How To Scale Your Small Business To Eight Figures

Posted by | July 4, 2021 | Career Tips / Blog

Bittu Kumar is an award-winning serial entrepreneur, co-founder of Enterslice and an expert in scaling small businesses to eight figures.

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Small businesses are the backbone of the economy. In the U.S., small businesses generate 44% of economic activity and are responsible for roughly two-thirds of net new jobs in the market. However, amid recession fears — the World Bank predicted the global economy would shrink by 5.2% in 2020 — many businesses are facing an existential threat.

The question is, is it possible to scale your small business and generate more revenue in these challenging times? The answer is yes. From my experience scaling many businesses to eight and nine figures, there’s never a bad time to start a business and scale your revenue. According to President Biden’s remarks to Congress, roughly 650 American billionaires collectively added more than $1 trillion to their net worth during the pandemic, and it’s time for small businesses to get a piece of the pie. 

But, most of the small online businesses I work with don’t have a roadmap for how they will reach $10 million in revenue. Sometimes they have a vision and they have goals to get to these numbers, but they don’t have a solid plan and actionable steps to achieve them. They may not have good prospects for their business, proper sales mechanisms or adequate delivery systems.

Here are my five steps on how you can scale your business, even during a pandemic:

1. Have a strong funnel in place for your business.

Many small online businesses have an inconsistent flow of business. The primary reason for this is a lack of a well-defined funnel. That may mean: You’re trying too many marketing channels, or not trying any marketing channels at all; you don’t have a well-defined product or service and that confuses prospects; you have a lack of testimonials; or your funnel talks more about selling your product than solving customer problems.

Having a well-thought-out funnel that embeds an ethical persuasion system for the entire business cycle can help your business become a cash-producing machine.

2. Define SOPs and systems.

Standard operating procedures (SOPs) and systems act like catalysts in any business environment. They aren’t just for Inc. 5000s — they can be used to drive clarity and growth for businesses of any size. Break complex operations into simple tasks and employ software to automate lead outreach, nurture prospects, automate sales and streamline customer delivery.

Henry Ford designed the first moving assembly line (a kind of SOP) and reduced the time it took to build a car to one hour and 33 minutes. That’s why Ford was able to scale its car production to millions of vehicles and reach over $200 billion in net worth as of 2021. SOPs and systems can do the same for you.

Remember, you created a business because you didn’t want to have a 9-to-5 job. By putting the right SOPs and systems in place, you can quickly scale your small business and disengage from non-productive tasks within your business.

3. Use feedback loops to turn things around quickly.

Many small business owners are slow when making decisions. If you have quality SOPs and systems in place already, you’ll be able to measure and analyze the effectiveness of your choices. Instead of deciding in months, you’ll be able to make decisions in days. 

Quality feedback loops can help you massively scale your business. You’ll be able to quickly measure things such as the effectiveness of your new ad, the effectiveness of new hires, the efficacy of new campaigns and partnerships and more.

Once you measure, you can see what’s working for you and what’s not, and then you can make decisions to pivot in your favor. With the limited resources small businesses have and a quickly changing business environment, feedback loops can be a gamechanger.

4. Delegate your tasks.

Many small business owners tend to do everything on their own. Is it worth it? No! For example, if your goal is to earn $1 million this year, your hourly rate would roughly equate $450, so ideally, you shouldn’t do anything that isn’t returning that amount of money.

Outsource tasks that don’t require your attention. Hire the right people who can do it for you for less than $450 per hour. In the long run, it’ll free up your time and give you the flexibility to choose more profitable tasks such as closing sales. You can hire virtual assistants for a low hourly fee.

The business owner’s goal should be to solve problems and not get involved in them. Note: This is a goal-achieving technique, and you should use it only when you have the first three steps in place. 

5. Under-promise and over-deliver. 

“The marketplace is competitive. More and more people are starting online businesses.” How often do you hear these words? It’s true that it isn’t easy to retain customers and get referrals. There’s a way, but many people don’t do it. When customers are dissatisfied with the service they received, it’s often because they were over-promised and the service under-delivered.

Do the opposite. Try to deliver more than what you have promised and you’ll see magic happen. Not only will this make your existing clients happy, but it’ll also open the floodgates for organic referrals that can be vital to your small business’s success.

As an expert in scaling businesses, I can reassure you that it’s not as difficult to scale your small business as it may seem. All Fortune 500s were small companies at one point in time, but they worked on creating strong funnels, developing scalable systems, pivoting using feedback loops, hiring qualified employees and surpassing customer expectations.

Bittu Kumar is an award-winning serial entrepreneur, co-founder of Enterslice and an expert in scaling small businesses to eight figures.

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