Three proven strategies for scaling your business up
Category Commercial and Industrial News
If you've opened a business and started to gain some traction, it's time to start thinking about the future. How can you increase your market share, become more widely known among your target audience and ultimately earn greater profits? 3Cube Property Solutions provides a blueprint for scaling up your business, with three actionable tasks.
- Develop a scalable infrastructure
Before your business starts growing, you need to be ready for the growth - and this means having a scalable infrastructure that allows your business to handle growth efficiently without compromising on performance. This in turn means having robust IT systems, cloud services and automation tools to streamline operations as much as possible. From a human resources perspective, this means developing a scalable hiring plan to ensure that you have the right talent as your business grows.
The popular ride-hailing service Uber offers a great example of a scalable business model. The company's platform allows it to quickly enter new markets due to its flexibility and ability to efficiently match supply and demand. It is also a great example of how businesses can expand into new fields, since the widely-used Uber Eats app provides another service that can be run using the same infrastructure as the ride-hailing platform.
- Expand your market reach
There are a few different ways to expand your business's reach. You can expand geographically by finding ways to enter new markets, or you can introduce new products or services that complement your existing offering. Another option is to form strategic alliances with other businesses to attract more customers.
In their report on expanding market reach, Deloitte refers to the example of Netflix, which expanded its reach by thinking outside the box and finding ways to usurp Blockbuster Entertainment's market share. Rather than imitating Blockbuster's focus on hit movies, Netflix, in its early days, provided unique films for viewers seeking movies in specific niches, such as documentaries and Bollywood.
The music industry provides another example of how tapping into a niche market leads to expanded market reach. The Deloitte report discusses how indie music labels displaced their mainstream music counterparts by bringing niche artists and genres to listeners via a growing digital distribution channel.
- Leverage data and analytics
There are various ways that data can be leveraged to help you make informed decisions and optimise operations - both of which are necessary if you're scaling your business up. For example, customer insights and feedback can be used to refine your products, services and marketing strategies. Data analytics can also reveal inefficiencies in your operations that, if rectified, could make your business more efficient. Key performance indicators (KPIs) are another data point that can be used to measure progress and identify growth opportunities.
McDonald's and Starbucks provide two real-world examples of how big data is being used to scale up businesses. In the global case of McDonald's, a plan was needed for the brand to work in harmony with the global trends towards healthy living and online ordering. After unlocking the data, the company developed digital drive-through menus that change according to time of day, weather and historical sales data. On a hot day, the menu is likely to display cold beverages, while during winter, it might display a promotion for a coffee with its breakfast menu.
Starbucks is using big data to create a better customer experience by recommending products to their rewards programme members. Members also receive personalised emails with discount offers if they haven't visited Starbucks in a while, giving them an incentive to reengage with the brand. This data is also used to determine where new stores will be opened.
Every business that's scaling up has one shared need: premises that can accommodate their growth. If you're looking for the right commercial, industrial or retail property for your business in Gauteng or Cape Town, get in touch with 3Cube Property Solutions today.
Author: 3Cube Property Solutions
