Having a scaling small business plan in place for your small business is important if you want to make the transition from small business to corporation or big business. Not many small businesses have scaling in mind, but when dealing with business growth, building your business around scaling is important.
It’s much easier said than done but small business scaling and business development generally is not impossible if you’re smart about it.
The first thing you should do is document everything. Whether you’re training an employee, or documenting a business procedure it should be done as soon as possible. This way you’ll have access to all the transactions and training you’ve ever done. When you become a large enterprise you can simply give access to the transactions to your accountants and the training to your new employees. Training can be done either through written documentation or by filming it. In the case of the procedures, you can review them and see what needs to be changed to streamline the procedures.
An Accountant Can Give You the Best Insight for Scaling Small Businesses
Hiring an accountant early on in your business is another great idea to help you scale your business. You don’t need to hire an accountant full time, but have one run your numbers and figure out how exactly to scale your business. Scaling small businesses is a lot easier with someone who can help you understand the numbers and give you the ability to make the best choices as you’re moving on. Basically, if you’re going to restructure or expand your company, discuss it with an accountant.
Finding out if your company is doing well will help you make the transition to a larger enterprise as you can modify your procedures and strategies, but figuring it out is a lot more than just sales numbers. There’s a lot of trial and error to determine what to measure. It might be the number of people who called or walked into your store, or an assortment of other factors.
Incorporating Your Scaling Small Business to Protect Yourself
When you become a big business, you are going to have a lot more liability. When you’re making the transition you’ll probably want to incorporate your Los Angeles California small business. Protecting your business and yourself is important, and you can do it with many legal entities such as an LLC, corporation, or S Corp. It does cost a bit of money to incorporate but it’s very important to your scaling small business. Some partnerships will still make sense, but you don’t want to stay a sole proprietor or a partnership for too long.
What incorporating does is remove your personal liability from the company. That means you won’t lose money from your personal bank account or lose your home if your company fails. There are also some significant tax benefits and advantages when you become a corporation.
Information runs throughout your whole business and keeping as little information in your head as possible is the best strategy. You’re only human so you’ll likely forget things from time to time which means having it in a database where it’s not going to get lost is an important strategy. Have your employees keep their information written down or stored so they don’t lose it as well.
Remembering everything can make dealing with clients and firms a lot better and even bring in more sales. Even if you have an amazing memory, as you experience business growth you’ll have a harder and harder time keeping track of everything.
Find out what all of your responsibilities are, and create job positions along with detailed descriptions that take care of those responsibilities. That way, when you can no longer handle everything by yourself, you can hire someone easily and not have to worry about that responsibility anymore. It’s a lot better to plan ahead for jobs rather than hire someone and try to figure out which responsibilities they should take on.
In order to plan for all of these bumps in the road, plan some growth management meetings to figure out exactly how you’re going to handle your business growth. That way you’ll be completely prepared for scaling small businesses.