What is The Right Time to Scale Your Business?

Scaling Your Business

While running your business, you have definitely encountered a stage where the demand has become more than your capacity. You would have had to turn down new customers even though they were bringing in a significant amount of business.

High demand is fantastic, but one of the most common dangers for new businesses or a startup is the inability to keep up with it. You’ve lost customers, vendor connections, and all the buzz surrounding your firm before you know it.

Scaling is frequently mistaken for basic expansion. Many people believe that “Scaling Up” only refers to acquiring a large number of new customers; however, it also refers to how you respond to new consumers and the infrastructure you construct to support them.

Scaling your company entails laying a foundation that allows you to serve more clients with the same amount of resources. It’s not something you do once and then forget about, it’s something you’ll do on a regular basis.

Small business owners must be prepared for expansion, but how do you know that now is the right time to scale your business? And do you have the required capability to scale your business?

Here are 5 indicators which could help you understand how to determine the correct time to start scaling your business.


Cost is one of the major issues for businesses looking to expand. Even if your revenues look to be robust, without a sustainable cash flow, growth will be tough. When you have a solid understanding of the business model and its track record, you can make a more accurate and reliable forecast.

A cash-flow projection for one month, two months, a year, five years, and so on, which would act as milestones, will provide you a more accurate picture of your company’s potential. If you pay attention to these indicators, you’ll be able to tell when it’s time to invest and scale your company.


If you’re prepared to scale, your firm should see a continuous influx of new customers as well as many repeat customers. A loyal customer base indicates that your company provides a high-quality product or service that is consistently delivered. Repeat customers also give you a sense of financial security and assurance that your firm will be in demand in the future.

Just because a firm is doing well now doesn’t indicate it will continue to do so in the future. One of the most difficult issues that organizations confront while growing up is attracting enough consumers and clients to sustain their expansion.


One significant factor affecting your scaling plan is the state of your industry. Be cautious about expanding if your company is in a stagnant or declining industry. Before you take on any big additional risk, make sure your industry has room for expansion. Just keep an eye on the future and try to assess your industry’s overall prospects for continuous growth before making such a commitment.

Make a list of potential scenarios for how your demand may change as you expand, and plan how you would respond to each one. Also consider your customers expectations and mindset and how they would change with time.


It is critical that you have defined procedures and right systems in place to fit your company’s structure, regardless of how you want to scale your firm. You should examine your operating systems and determine whether they can scale with the company. Do you, for example, have the necessary processes or automation in place to allow your staff to effectively train new hires? Or do you have the right tools or the latest technology to enable this automation? If you don’t, you’ll have a hard time expanding your current offerings in any meaningful way. Also, you need to check if you have the correct outsourcing partners to help you in better collaboration and thereby take your business to the next level.

To read more about how to prepare SOPs for your business, check out our blog post here.


Many entrepreneurs overlook the labor component of the scaling equation. You are not ready to expand if you do not already have a solid team in place to manage the additional effort that growth will entail. Businesses seldom expand up without bringing on new talent in some form. As your company expands, you’ll need to relinquish some control and recruit new team members to help you in business growth.

During the growth stage, you concentrated on letting go and forming the appropriate team. During the scaling phase, you are thinking about creating processes and routines to help your team perform better. You would also want to develop a company culture to help your new employees integrate better within the company. You’ll feel more comfortable delegating duties and trusting your team to manage complicated jobs without your direct involvement if you have the right team and right processes in place.

You can learn more on how to create a hiring roadmap based on your business strategy here.

Scale your business only when you’re ready. Don’t put your business and its development at danger just because earnings are up during one quarter or you have a reliable workforce. It’s vital to remember that you can’t achieve a few little goals before attempting an unattainable one. Although there is no such thing as a ‘guaranteed success’ in business, avoiding risk should be a top goal before scaling.

Do you have any exciting experience of scaling up your business? Do let us know in the comments section below!

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Asamby is an award-winning operations consultancy for service and tech businesses. We help you build scalable operations, an efficient organization and excellent strategy execution. For less pain and more profit.


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