Scaling-up to grow your business
Source: BFS Staff
If you want to scale-up your business, there are several things you need to take into consideration. You need to think about recruiting for growth, winning new customers to boost revenue, and selecting your funding options.
There are many key growth strategy options you can explore. Developing new products or services, diversifying your offering, targeting new markets, and trying new sales channels can all lead to business growth from increased market share.
According to the Economist, the UK has a thriving startup culture but struggles with scaling them. To put things into perspective, high-growth companies are those which employ over ten people. Such companies maintain a minimum growth rate of 20% over a three year period in both revenues and employees. As you can imagine, to achieve this is no easy feat.
Startups fail to scale up for various reasons but some prominent ones include a lack of leadership capability. Failure to win to new customers or boost revenue from an existing client base is also another reason why growth is impeded.
Adequate support from government and the private sector is critical in facilitating growth and the scale-up of small businesses. In the UK, there are many options available to SMEs. Funding and support can be accessed through grants. Businesses can apply for regional grants through programmes such as the Regional Growth Fund.
Other opportunities that promote growth and scale for businesses in the UK include:
The National Business Support Helpline;
Government national business support programmes;
British Business Bank and other grants for investment and tax relief; and
Local Enterprise Partnerships which are voluntary partnerships between local authorities and businesses to help local economic development.
There are a range of options businesses with ambitions to scale-up can look into. Aside from government-backed initiatives such as Great Business which offer assistance, small companies can turn to angel investors, venture capitalists, or crowdfunding to get the resources necessary to grow.
Luckily, the UK government also runs approximately 260 schemes which support startups trading for under two years.