Scaling a business is an exciting phase, but it can also be incredibly challenging. As your business grows, it becomes imperative to implement systems that ensure efficiency, consistency, and sustainability. Without the right infrastructure in place, rapid growth can lead to chaos and inefficiency.
In this blog post, we’ll explore our top 3 recommended systems you should put in place to scale your business successfully.
Financial Management System
Before doing anything else, you need to have financial systems in place, and you need to have a schedule to keep up with them. At a minimum, your books should be balanced monthly and you should have a good idea of where you stand financially before making any decisions.
Accounting Software
There are paid programs, like QuickBooks or Xero, and free programs like Wave, that will help manage invoices, track expenses, and generate financial reports. Before deciding, make sure your CPA of choice knows the program to make tax time easier!
Budgeting and Forecasting
Work with a consultant to create your KPI dashboard and projections. These will help you budget, plan for growth, and identify any potential financial bottlenecks before they occur.
Cash Flow Management
Remember that revenue, profit, and cash flow are all separate things! Keep cash flow moving with invoice reminders to clients, or request payment on file with an encrypted system so you get paid regularly.
Payroll
For employees and contractors, you need to pay them on time! Paying your workers systematically and timely is part of HR and legal compliance. Plus, it keeps everyone happy. There are a lot of systems to choose from; it all depends on the level of support you need. Programs like Gusto and Quickbooks Payroll can be upgraded to add full HR consulting. Your bank may offer a less expensive option with less bells and whistles. When deciding, look at cost and function for not only now, but also in the future.
For instance, you will want to know how much you pay per employee and if you have to pay additional fees for each state you employ within. Your Payroll system should, at a minimum, file your state and federal income withholding and SUI taxes. In most cases, you will need to set up these tax accounts in each state on your own.
Work with your HR and legal team to ensure you are maintaining proper records, classifying employees correctly, and staying compliant with tax regulations.
Vendor Payments, Accounts Payable, and Invoices to Pay
Implement a systematic approach to tracking and scheduling payments. Put what you can on autopay, and remember that you can often negotiate due dates with your vendors or ask them to consider early payment discounts.
Stay organized with a central payment hub, which could be as simple as a shared drive that has “incoming” and “paid” folders. As your business grows, this systematic approach ensures good vendor relationships, secures reliable services, and supplies/aids sustainable growth.
Sales and Customer Relationship Management System
Relationship management is huge as you scale. Keeping up with clients, prospects, and referrals can take hours each week. With a process in place, you can fly through it in an hour each day. You don’t have to start with an expensive program; you can create and track your pipeline on a spreadsheet.
Lead and Contact Management
Organize and segment your customer data for targeted marketing and personalized communication. Organize them by relevant categories such as industry, how you met them, where they live, etc. This will allow you to reach out in mass if you have an industry update or an event you want to invite them to. You can use a CRM, or do it for free with email tags within your contacts. Make it a habit to add new contacts to your CRM or Email Contacts with a clear strategy on how to tag them.
Sales Process
Streamline your sales processes with a clear pipeline for first contact all the way through new client onboarding. You can use a paid tool such as Copper or Pipedrive, set up a pipeline on a free tool such as Asana, or go old school with a spreadsheet. The important thing is that you manage leads and track sales activities. As you build up data on your sales process, you can refine the process to make it more efficient.
Customer Onboarding and Support
Your job doesn’t end with the sale! The first work you do for your client is their onboarding. Over-deliver with a well-thought-out onboarding process – What do they need from you to be successful? What do you need from them to be successful? Before having an initial call, send them instructions and what to expect, and keep a checklist of information provided and information needed.
Don’t stop there. Implement a follow-up process with clients, checking in to make sure they are satisfied with your service, and allowing them to ask additional questions. You can automate your check-ins with surveys or scheduled emails. Have a system in place to handle complaints or concerns and make sure your response takes priority. You can implement a ticketing system to efficiently manage customer inquiries and complaints, but make sure it is personal and easy for them to use.
Human Resources and Talent Management System
Managing your workforce and ensuring compliance with labor laws is essential for maintaining a stable and productive team. As your business expands, you’ll need to attract, onboard, and retain top talent. Check with your HR consultant or lawyer to make sure you comply with local and federal laws regarding recruitment and employment.
A strong HR system should include:
Employee Recruitment
As you scale, you’ll need more workforce. Have your job descriptions in place and know your budget for recruiting. Keep a list of places or people you can go to to advertise the position (Indeed, industry groups, networking contacts). Systemize your interview process to make it less painful for everyone by creating a streamlined interview process, including brainstorming some stock questions you will want to ask. Create a tracking system with Google Drive or Asana to keep track of each applicant and their stage in the process.
Employee and Contractor Onboarding
Review your employee handbook and independent contractor agreements to guide your onboarding process. Create a systematic onboarding procedure to ensure each team member understands your culture, their role, who to go to for support, where to find important information, and how to communicate with the team.
If you have any policies of high importance, such as file documentation or professional guidelines, this is your time to share that information. Create a checklist and delivery system for this information; either in person, written, or (my personal favorite) video delivery. Document that the information was provided, and review your onboarding at least once a year to make any needed changes.
Training and Development
Provide continuous learning opportunities for employees to help them grow along with your business. Create a system to check in with your employees or managers to determine what training may be relevant. This can be as easy as a quarterly survey to determine what their needs may be.
Remember that every employee on your team is an asset; they are how you make a profit and if you plan to sell, well-trained employees are attractive to buyers. Also, on-the-job training and development is a great way to keep talent on board.
Well-trained employees lead to improved productivity, innovation, and customer satisfaction – making it a strategic imperative for sustainable growth.
Employee Performance Management
You don’t have to wait for yearly reviews to check in on performance. Schedule regular check-ins with your employees or their managers and complete an internal review with your management team quarterly. This will catch any issues early, and allow you to identify where team members need additional training and support to succeed.
For a yearly review, implement a schedule or tracking system so it doesn’t fall off your radar. This could be done with the entire company at once, or yearly on each employee’s start date. Determine how you will conduct the review, and more importantly, what you will do with the information you receive.
Employee Offboarding
Nobody wants to lose an employee, but it’s bound to happen. Have a plan in place to protect sensitive information/data and uphold professionalism during the entire process. Systematize any offboarding procedures such as final payroll, return of materials, and exit interviews with a simple checklist, or use Asana or Trello to track your activities.
Departing employees are still voices of your brand; make sure they have a positive experience so that your reputation as an employer is positive. Also, take any departure as a learning opportunity. Determine what, if anything, you could have done to retain them and review your processes, training, and culture to determine if you need to make any substantial changes.
In Summary: Scaling your business is a significant undertaking, but with the right systems in place, it becomes a manageable and rewarding journey. By focusing on the systems we explored today – you’ll create a solid foundation for sustainable growth.
Remember that scalability isn’t just about expanding; it’s about doing so in a way that maintains the quality of your products or services and enhances the overall customer experience. As you expand, never lose sight of your core values, customer focus, and unwavering commitment to your team and mission that ignited your entrepreneurial spirit.
Did you know that we offer consulting on building systems to scale?