How To Scale a Business: 10 Strategies

Maintaining a growing business is about much more than increasing sales and revenue. Even a successful product doesn’t guarantee a company’s survival, as over 80% of these companies still fail.

For a business owner to scale up a business, they also need the right strategy, team, and processes in place to support new customers, products, and services.

While any business leader may dream of becoming an overnight success, successful scaling involves building and executing a long-term, sustainable strategy. No matter the size of your business, understanding what it means to scale and identifying actionable steps you can take to do so are both key to reaching your goals.

10 strategies for how to scale a business:

1. Strategize how to increase sales
2. Invest in technology
3. Expand your team according to the market’s needs
4. Get external help
5. Create a plan around realistic goals
6. Develop management skills
7. Focus the company’s offerings
8. Enhance your financial planning
9. Perform an updated market analysis
10. Conduct a risk assessment

What does it mean to scale a business?

The terms “growth” and “scale” are often used interchangeably when discussing business expansion. While the two are related, they have distinct differences.

Growth refers to increasing revenue at the same rate that a business adds resources—such as new team members, technology, and capital (from expanding into new markets), to name a few. On the other hand, scaling is when an organization identifies ways to grow more efficiently, resulting in revenue growth at a substantially greater rate than increases in resources and expenses.

Scaling a business requires thoughtful, strategic planning. New businesses fail at a rate of about 20% within two years, 45% within five years, and 65% within a decade of opening.

Below are the key aspects to consider to successfully scale a business.

Company goals

When setting goals to scale your business, use the SMART framework to make sure your goals are clear and attainable. They should be:

• Specific. Clearly define what you want to accomplish.
• Measurable. Establish concrete criteria for measuring progress.
• Achievable. Set realistic and attainable goals.
• Relevant. Ensure the goal aligns with your overall business objectives and core values.
• Time-bound. Set a clear timeline for achieving the goal.

When applying SMART goals to scaling, focus on both short- and long-term objectives. Overemphasizing short-term goals risks scaling too quickly and neglecting infrastructure needs for long-term success.

Consider both outcome and process goals in your scaling strategy. Outcome goals represent the end result you aim to achieve, while process goals outline the steps to get there.

For example, if your outcome goal is to double your customer retention rate (specific and measurable), identify actionable steps to improve customer experience and engagement (achievable and relevant) within a set timeframe (time-bound).

Remain agile when setting goals, allowing your team to pivot your strategy if market conditions or customer needs shift. Regularly review and adjust your SMART goals to align them with your scaling objectives and current business environment.

Number of team members

Businesses that scale too quickly might assume that if the goal is to double the revenue, the organization must double its workforce. This isn’t likely to be a sustainable strategy, especially if revenue growth slows. Instead of building your team with quantity in mind, prioritize quality. Engage skilled leaders who can help oversee and motivate team members. Bring in talented individuals with the specialized skills you need to meet your business goals.

Internal processes

A key to successfully scaling your business is implementing repeatable day-to-day processes and effective standardized workflows. This is called process mapping, which goes like this:

1. Identify key processes. Start by listing all major processes in your organization, from onboarding team members to invoicing customers.
2. Map current processes. Use flowcharts or swimlane diagrams to visually represent each process step-by-step. This helps identify inefficiencies, bottlenecks, and redundancies.
3. Analyze for scalability. Examine each process and ask:some text
   • Can this be automated?
   • Are there unnecessary steps?
   • How will this process handle increased volume?
4. Redesign for efficiency. Based on your analysis, redesign processes to be more streamlined and scalable.
5. Document and standardize. Create clear, accessible documentation for all processes to ensure consistency across the organization.
6. Implement automation. Use tools to automate repetitive tasks and workflows. Some recommendations include:
   • Zapier for creating automated workflows between different apps
   • Trello for project management and task tracking
   • Asana for team collaboration and work management
   • ProcessMaker for business process management and workflow automation
7. Monitor and iterate. Regularly review and update your processes as your business grows and evolves.

Having documented, efficient processes in place can significantly impact your organization’s ability to scale. It reduces time spent on manual tasks, makes onboarding new team members easier, and ensures consistency across operations.

Remember, the practice of individual team members creating their own processes for each task isn’t scalable. It leads to inefficiencies and makes growth more challenging. By mapping, analyzing, and optimizing your processes, you create a solid foundation for sustainable scaling.

Common business scaling mistakes

Common mistakes businesses make during the scaling process include:

• Scaling too fast
• Prioritizing short-term over long-term goals
• Losing focus
• Hiring for quantity over quality
• Overlooking processes and systems to drive efficiency
• Lacking agility

In the following sections, we offer detailed guidance to avoid these pitfalls and scale your business the right way.

10 strategies for scaling a business

Every business strategy is unique, but companies that successfully scale often follow many of the same best practices. These 10 tips will point you in the right direction for building a winning scaling strategy:

1. Strategize how to increase sales

Increasing sales is a top priority for any business looking to scale. Scaling sales can either mean adding new customers or growing the average revenue from current customers. While both options drive results, expanding your relationship with current customers is often more cost-effective than attracting new business. On average, getting a new customer can cost 5-6 times more than keeping and engaging customers you already have.

To scale—rather than grow—your business, think of ways to increase sales while maximizing profit margins and minimizing additional resources.

Some best practices to increase sales include:

• Zoning in on a target market
• Understanding customer behavior
• Addressing customer feedback
• Building a team of skilled sales representatives
• Developing an effective marketing plan
• Managing leads and customer relationships with CRM software
• Refining your message

Several of these are tactics that can help scale customer support, which can ensure that you can continue providing excellent customer service as you grow. Customer relationship management (CRM) can also help here.

CRM software helps businesses track and analyze interactions with their customer base. It uses this data to improve customer service, retention (customer loyalty), and sales. Some top CRM software recommendations include:

• Salesforce. Here’s a comprehensive CRM platform suitable for businesses of all sizes.
• HubSpot CRM. This one offers a free version with basic features, making it ideal for small business owners.
• Zoho CRM. This affordable option has a wide range of features and integrations.

2. Invest in technology

With the right technology, many manual tasks can be automated, freeing up time for team members to focus more on broader business goals and strategic priorities. This means you can drive improved business outcomes among the team members you already have on board.

To scale your business, consider investing in technology to help automate tasks and processes such as:

• Team member onboarding
• Accounting and payroll
• Customer relationship management
• Project management
• Appointment scheduling

Top generative AI tools that can help with these areas include:

ChatGPT

ChatGPT makes drafting onboarding documents, creating project briefs, and generating customer communication templates more efficient. However, it has its pros and cons:

Pros:

• Versatility. ChatGPT can handle a wide range of tasks, including content generation, customer service, and text classification.
• Human-like interaction. It mimics natural conversation, enhancing user experience and engagement.
• Accessibility. It’s also easy to sign up and use, making it accessible to a broad audience.
• Cost-effective. Being free to use makes it great for small businesses and startups.

Cons:

• Accuracy issues. ChatGPT may produce plausible but incorrect or nonsensical text, known as “hallucinations.”
• Bias and ethical concerns. It may generate biased or discriminatory responses based on the data it was trained on.
• Dependence. Over-reliance on ChatGPT can reduce critical thinking and creativity.
• Privacy and security. There are concerns about data privacy and the potential for misuse of information.

Jasper

Jasper streamlines the production of marketing content, social media posts, and email campaigns. Here are some aspects to consider:

Pros:

• Marketing specialization. Jasper is tailored to create high-quality marketing content across various channels.
• Template variety. It offers a wide range of templates for different content types, saving time and effort.
• AI-powered creativity. Jasper can generate unique content ideas to help overcome writer’s block.
• Integration capabilities. It integrates with other tools like Grammarly and Copyscape for enhanced functionality.

Cons:

• Learning curve. New users may need time to fully utilize all of Jasper’s features effectively.
• Cost. Unlike some free alternatives, Jasper requires a paid subscription.
• Overreliance risk. Depending too heavily on AI-generated content may lead to a loss of brand voice.
• Fact-checking needed. As with all AI tools, output should be verified for accuracy and relevance.

Copy.ai

Copy.ai excels at crafting job descriptions, company policies, and automated responses for customer service. Here are its pros and cons:

Pros:

• User-friendly interface. Copy.ai offers an intuitive platform that’s easy to navigate, even for beginners.
• Diverse templates. It provides a wide array of templates for various business writing needs.
• Quick output. Copy.ai can generate multiple content options rapidly, saving time in the writing process.
• Customization options. Users can fine-tune the AI’s output to match their brand voice and style.

Cons:

• Limited editing features. While it generates content quickly, advanced editing tools are somewhat limited.
• Subscription required. Like Jasper, Copy.ai is a paid service, which may not suit all budgets.
• Potential for generic content. Without careful customization, outputs may sometimes lack uniqueness.
• Language limitations. While improving, it may not perform equally well across all languages and dialects.

When thinking about how to scale your business through automation, compare different technology partners and vendors based on usability, customer service, implementation timeline, cost, and other key criteria.

In addition to automating tasks, standardizing your business processes using technology will help as you build your team. Implementing approved technology and documenting a clear set of instructions for specific tasks will make the scaling process much smoother.

3. Expand your team according to the market’s needs

As you map out the team needed to scale your business, determine the hard skills (e.g., coding, business analytics, project management) and soft skills (e.g., agility, communication, time management) required of new employees or external talent to meet your goals. Identify any gaps in your current team where these hard and soft skills are missing.

Also, consider leadership potential. Look for traits such as active listening, problem-solving, and emotional intelligence.

Tips for hiring both hard and soft skills include:

1. Clearly defining job requirements, including both technical and interpersonal skills
2. Using skills assessments or practical tests to evaluate hard skills objectively
3. Incorporating behavioral interview questions to assess soft skills
4. Considering cultural fit alongside technical competencies
5. Leveraging employee referrals to find candidates with compatible soft skills
6. Using diverse interview panels to get multiple perspectives on candidates

An ideal interview process for scaling businesses might look something like this:

1. Initial screening. Review resumes and cover letters. Conduct brief phone or video screenings.
2. Skills assessment. Administer relevant technical tests or case studies. Provide take-home assignments for more complex roles.
3. In-depth interviews. Conduct structured interviews with the hiring manager and team members. Include behavioral and situational questions to assess soft skills.
4. Company culture fit evaluation: Arrange informal team meetings or lunch with potential colleagues. Assess alignment with company values and work style.
5. Final interview. Meet with senior leadership to discuss long-term potential. Address any remaining questions or concerns.
6. Reference checks. Speak with former employers or colleagues to verify skills and work ethic.
7. Job offer and negotiation. Present a competitive offer based on market research. Be open to negotiation within predetermined parameters.

Remember, the goal is to find candidates who have the necessary skills and the potential to grow with your scaling business.

Eliminate the guesswork of finding the right skill fit for your team. Upwork Any Hire is available to help you engage independent talent with the right skills to scale your business.

4. Get external help

During the early stages of business growth, many organizations have a handful of core team members who wear multiple hats. However, in the long run, expecting every team member to be a high-performing generalist can lead to costly errors and burnout. As you scale your business, consider outsourcing or bringing in skilled specialists to improve efficiency and drive outcomes.

Engaging specialized talent might sound costly and challenging to scale, which can be the case with full-time workers if they aren’t yet needed full time. Instead, businesses are increasingly embracing a more cost-effective option: independent professionals. In fact, 78% of businesses have used remote independent talent in the past year, while 47% plan to use more in the next two years.

Rather than making the business case and waiting for budget approval to hire full-time workers, independent professionals are often paid on a per-project basis and can be brought in as needed. This enables you to create a variable cost for talent, compared to the traditional fixed cost for full-time workers. With this approach, you can more efficiently scale your team while reducing costs, boosting productivity, and driving business agility.

As you look for talented independent professionals to scale your business, you don’t have to approach the search alone. Enterprise is a powerful platform that offers immediate access to top independent professionals, contractors, consultants, and agencies. There’s never been a more flexible way to hire, as Enterprise takes all the logistical and operational hassles out of your hands, helping you quickly fill internal skill gaps and build your dream team.

5. Create a plan around realistic goals

Businesses that effectively scale strike the right balance between setting reasonable yet challenging goals. To achieve this, consider organizing a goal-setting workshop with your team. Here’s a format you can follow:

1. Vision alignment. Start with a discussion about the company’s overall vision. Ensure all participants understand and align with it.
2. SMART goal setting. Introduce the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework. Have teams brainstorm potential goals using this. Discuss and refine these goals as a group.
3. Goal prioritization. Use a voting or ranking system to prioritize the goals. Select the top 3-5 goals to focus on.
4. Milestone breakdown. Identify key milestones for each selected goal. Use backward planning—start from the end goal and work backward. Ensure milestones are specific and time-bound.
5. Action planning. For each milestone, identify specific actions needed. Assign responsibilities and deadlines for each action.
6. Review and adjust. Review the entire plan as a group. Make any necessary adjustments based on feedback.

When breaking down long-term goals into manageable milestones, consider the following:

• Time-based milestones. Break the goal into monthly or quarterly targets.
• Progress indicators. Identify key metrics that will show progress toward the goal.
• Resource allocation. Determine what resources (time, money, personnel) are needed for each milestone.
• Interdependencies. Recognize how different milestones may depend on each other.
• Flexibility. Allow for adjustments as you progress and learn.

For example, if your goal is to achieve a 50% increase in sales over the next year, you might set quarterly milestones, each targeting a 10-15% increase. These can then be broken down into monthly targets for individual team members, such as the number of calls or meetings with prospects.

Remember to account for seasonality when setting your timeline. For instance, if sales typically slow during summer, adjust your quarterly targets accordingly. Consider enlisting the help of an experienced business planner to build and execute a scaling plan that accounts for these factors.

By following this workshop format and breaking down goals into manageable milestones, you can create a clear, realistic plan that motivates your team and supports effective scaling.

6. Develop management skills

Managers at your organization are responsible for motivating team members, achieving independent team goals, and holding team members accountable for outcomes. Individual managers’ effectiveness can directly impact your organization’s likelihood to successfully scale. Therefore, managers across departments need to have the right skills to drive positive business outcomes.

Whether you’re developing management skills among your current team members, hiring full-time workers, or engaging business managers, identify the most important skills that will positively contribute to scaling your business.

Management skills can include:

• Critical thinking
• Strategic planning
• Time management
• Change management
• Leadership

Below are some management training programs to consider:

• Harvard Business School Online - Leadership Principles
• eCornell - Executive Leadership Certificate
• American Management Association - Management Skills for New Managers
• Coursera - Strategic Leadership and Management Specialization (University of Illinois)

To identify areas for improvement and evaluate potential managers, consider using one of these professional assessment tools:

• DiSC Assessment. This tool evaluates behavioral styles and preferences in the workplace, helping managers understand their leadership approach and how to interact effectively with team members.
• CliftonStrengths (formerly StrengthsFinder). Developed by Gallup, this assessment identifies an individual’s top talents and provides insights on how to leverage them in a management role.
• Korn Ferry Leadership Architect. This comprehensive assessment framework assesses leadership competencies across various dimensions, providing detailed insights into a manager’s strengths and areas for development.

When developing management skills among current team members, hiring full-time workers, or engaging business managers, use these tools to identify strengths and areas for improvement. Prioritize the skills that will most positively contribute to scaling your business, considering your organization’s specific needs and growth strategy.

7. Focus the company’s offerings

While casting a wide net with company offerings may drive initial revenue, it often poses risks to long-term growth and scalability. Successfully scaling businesses understand the importance of focusing their products, services, and target market.

Here’s how to identify and target a niche market:

1. Understand your strengths and weaknesses. Conduct a SWOT analysis of your business (we detail this in a later section: “Conduct a risk assessment.”) Identify what sets you apart from competitors (i.e., a competitive analysis).
2. Define your niche. Consider customer size, industry, geography, or specific needs. Look for underserved segments within your broader market.
3. Calculate your total addressable market (TAM). Estimate the revenue potential of your chosen niche. Make sure it’s large enough to support your growth goals.
4. Identify target customers’ challenges. Conduct market research through surveys, interviews, or focus groups. Use social listening tools to understand pain points.
5. Learn from current customers. Analyze the behavior and preferences of your most profitable customers. Identify common characteristics among your best clients.
6. Develop targeted solutions. Create products or services that address specific niche pain points. Tailor your messaging to resonate with your target audience.
7. Test and refine. Launch targeted marketing campaigns to your niche. Monitor results and adjust your approach as needed.
8. Evolve with your market. Continuously evaluate market trends, technology, and customer needs. Adapt your offerings to maintain relevance and competitive advantage.

By focusing on a niche market, you can position your business to better meet the needs of your core customers, stand out from the competition, and become a market leader. This focused approach allows for more efficient resource allocation, targeted marketing efforts, and the development of specialized expertise—all crucial factors for scalable, sustainable growth.

Remember, identifying and targeting a niche market is an ongoing process. Regularly reassess your niche strategy to ensure it aligns with your scaling objectives and market dynamics.

8. Enhance your financial planning

Regularly reviewing financial statements is crucial for scaling businesses. Balance sheets provide a snapshot of your assets and liabilities, income statements show your profitability over time, and cash flow statements reveal your liquidity. Analyzing these documents helps identify trends, pinpoint areas for improvement, and make informed decisions.

When seeking funding for scaling, consider these options:

• Venture capital. Ideal for high-growth startups.
• Business loans. Suitable for established businesses with steady revenue.
• Angel investors. Good for early-stage companies and small businesses needing smaller investments.
• Crowdfunding. Useful for businesses with products that resonate with the public.

To attract investors, create a compelling pitch deck that includes:

• Your unique value proposition
• Market opportunity and target audience
• Business model and revenue streams
• Financial projections and funding needs
• Team qualifications and achievements

Forecasting future expenses is essential for scaling. Allocate budgets to different areas based on strategic priorities, such as marketing, research and development (R&D), or talent acquisition. Continuously monitor your return on investment (ROI) across all business activities to ensure financial efficiency and adjust resource allocation as needed.

9. Perform an updated market analysis

Conducting thorough market research involves:

• Identifying industry trends. Use tools like Google Trends, industry reports, and trade publications. Attend conferences and webinars in your field.
• Performing competitor analysis. Analyze competitors’ products, pricing, and marketing strategies. Use tools like SEMrush or Ahrefs for digital competitive analysis.
• Gathering customer feedback. Conduct surveys using tools like SurveyMonkey or Google Forms. Organize focus groups for in-depth insights. Monitor social media conversations using tools like Hootsuite or Sprout Social.
• Market segmentation. Divide your market based on demographics, psychographics, or behavior. Tailor your strategies to each segment’s unique needs and preferences.
• Developing a strong value proposition. Clearly articulate how your product or service solves customer problems. Highlight your unique benefits compared to competitors.
• Brand positioning. Define your brand’s personality and values. Create a consistent brand identity to inform messaging across all marketing channels. Use positioning maps to visualize your brand’s place in the market.

10. Conduct a risk assessment

To conduct a comprehensive risk assessment, follow these steps:

1. Identify potential risks:some text
   • Financial risks (e.g., cash flow issues, market fluctuations)
   • Operational risks (e.g., supply chain disruptions, technology failures)
   • Strategic risks (e.g., changing customer preferences, new competitors)
   • Compliance risks (e.g., regulatory changes, legal issues)
2. Perform a SWOT analysis:some text
   • Strengths. Internal factors that give you an advantage
   • Weaknesses. Internal factors that put you at a disadvantage
   • Opportunities. External factors that could give you an advantage
   • Threats. External factors that could cause trouble for your business
3. Evaluate risk likelihood and impact. Create a risk matrix to prioritize risks based on probability and potential consequences.
4. Develop risk mitigation strategies:some text
   • Risk avoidance. Eliminate the risk by changing plans or processes.
   • Risk reduction. Implement controls to minimize the likelihood or impact.
   • Risk transfer. Share or offload the risk through insurance or partnerships.
   • Risk acceptance. Acknowledge and monitor low-impact risks.
5. Create contingency plans. Develop step-by-step procedures for addressing high-priority risks. Assign responsibilities and establish communication protocols.
6. Obtain adequate insurance coverage. Assess your business’s specific needs (e.g., property, liability, cyber insurance). Regularly review and update coverage as your business grows.
7. Implement a risk monitoring system. Regularly review and update your risk assessment. Establish key risk indicators (KRIs) to track potential issues.

By following these risk assessment and mitigation strategies, you can minimize the impact of potential threats and create a more resilient, scalable business.

Scale your business with Upwork

Scaling a business means building a clear strategy that outlines key milestones one, five, and 10 years down the line—and beyond. It also means aligning your short-term goals with your long-term goals, so you scale at a manageable pace. By keeping the big picture and your company vision in focus and building the right team, your business will be in a strong position to scale successfully.

Upwork is here to help you confidently source, engage, and manage independent professionals with the skills you need to scale your business. With Enterprise, we’ll partner with you to develop a strong, scalable talent strategy and build a custom solution that delivers the greatest impact on your business success. Learn more and get started today.

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Upwork is not affiliated with and does not sponsor or endorse any of the third-party tools or services discussed in this article. These tools and services are provided only as potential options, and each reader and company should take the time needed to adequately analyze and determine the tools or services that would best fit their specific needs and situation.