Scaling is often an important part of a business’ lifecycle, particularly for start-ups, but in a challenging climate and in the absence of the right support it can be a daunting prospect. In this article, we touch upon six key things to consider before going for growth:
- Funding requirements
If your plans for scaling up will require funding of some description, then it’s important to understand exactly how much you are going to need and how this will be utilised within the business, before making any applications or approaching lenders.
Get to grips with your figures as they stand today and spend some time on forecasting to try and understand the impact any growth will have on these. Often, funding will need to be repaid at some point, so it’s essential that you factor this in.
There are so many different types of funding available, it can be difficult to know what is right for your setup, but this is something your adviser can help you to determine.
- Employing staff
Scaling your business might involve employing more staff, or perhaps even employing staff for the first time. If you are employing more staff, you should ensure your objectives, expectations and ethos are communicated early on to maintain consistency across your organisation. Your staffing levels should also reflect any increase in demand you anticipate.
If you are facing the prospect of becoming an employer for the first-time, this can be overwhelming. From wages, auto-enrolment and statutory pay, to changing legislation, processing payroll and communicating with staff and HMRC, there is a lot to think about, to be aware of and to comply with.
If you’re concerned about meeting your legal obligations as an employer, outsourcing your payroll function may be something to consider.
- Resources and infrastructure
You may think you’re ready to scale your business but, before you jump the gun, it’s important to consider whether you have the resources and infrastructure in place to support your plans for growth. Your internal processes should be robust and able to withstand the change your business is about to embark upon – whether in respect of staffing, I.T., or cash flow.
Cloud accounting software, in particular, brings with it a whole host of opportunities to streamline your processes, improve productivity and make better business decisions based on real-time data.
- Cash flow management
Effective cash flow management, and balancing the books, is the cornerstone of any successful business. Don’t just blindly chase after profitability; know your break-even point, spend sensibly, and understand the simple maths that will help you to stay in control. Cash flow management can be made easier with regular management accounts, tailored to the needs of your business, alongside the advisory input to interpret these.
- Plan to succeed
This point is really as simple as it sounds – plan to succeed! Done right, a well thought out business plan should enable you to make better business decisions, to understand how your business is performing, to adapt quickly, secure investment, engage stakeholders or even to sell your business should you wish to do so.
- The right support
Having the right expertise and support available can be more valuable than you realise. Outsourcing certain functions can free up your time to focus on what’s important to you – growing, developing, succeeding and, ultimately, running your business.
How can George Hay help?
Whether business planning, cash flow forecasting and management, cloud accounting or processing payroll, our chartered accountants and business advisers in Bedfordshire, Cambridgeshire and Hertfordshire are ready to become part of your trusted support network.
We pride ourselves on building long-lasting relationships with our clients and, as a result, we’ve seen many through from start-up to successful, established organisation.
To find out how we can work with you, and help you to fulfil your business ambitions, contact our team of friendly professionals today.