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A lot of business has collapsed because they lack the simple strategies to scale up their business.
Some have a lot of funds, yet they are struggling with how to scale up their business. I will discuss a few strategies on how to scale up for business below.
Scaling a business means setting the stage to enable and support growth in your business. It means being able to develop freely without being restricted. It requires planning, some funding, and the right systems, staff, processes, technology, and partners.
Using the appropriate tactics, you can have a significant expansion within a few years even if you have a small amount of capital.
In my continent, which is Africa, most businesses start very small, mainly as a way of generating a small income to feed the family.
These small businesses often grow or show potential for growth. Unfortunately, the owners will suppress the business and fail to grow. Unknowingly, owners of small businesses often sabotage the growth of their small businesses.
I will use my uncle's experience with his business as an example. He started his business of buying and selling cars in the 90s.
He started with only one car, and he pushed until he could trade 8 cars at a time. Most of his profits were used to build himself a house. He spent about $20,000 on the house then.
He occasionally took money to buy meals and cover the costs of his kids' and other extended family members' tuition. paying the medical expenditures of his parents and other relatives who may occasionally get sick.
On the business side, my uncle did nothing except to continue selling the cars under a tree with a fence on the boundary.
How Was He Affected
He should have aimed to scale up his business, instead of starting by building a personal house, the money could have been used to acquire a commercial stand and establish more locations for selling his cars.
He can even expand the business to other states.
Additionally, he may have a showroom for his company. He could have hired respectable car dealers and then worked hard to provide vehicles to businesses in the private sector and the government if his company had been properly registered.
His company has the potential to expand. Unfortunately, the majority of the funds were misappropriated.
This is the error that most people make; ten years later, competition rises as a result of people copying his success in selling vehicles after realizing he was earning good money at it.
Prices dropped, and revenue dropped as a result.
The Chances He Ignored
He delayed scaling up his business to dominate in his sector.
He acquired personal stuff for himself instead of the business. If the business grows, he would acquire a lot of personal stuff for himself in the future and it won't have any effect on the business.
In conclusion, don't develop liabilities instead of investing and developing your business. To reap abundantly in the future, make your business your first focus.
