“We delight in the beauty of the butterfly but rarely admit the changes it has gone through to achieve that beauty.” —Maya Angelou
It seems like yesterday. I was scouring the internet looking for articles on scaling one’s business. While there is a lot of information for both newbie real estate investors and people who are doing hundreds of deals a year, there is not a lot of content available for people transitioning from newbie to veteran.
So for anyone looking to get out of the newbie group, this article is for you!
Scaling your business is a topic that will inevitably arise if your business is doing well. While it may seem like a natural progression, it is not for everyone. Before biting off more than you can chew, ask yourself the following questions to confirm that your business is scalable.
Questions to Ask Yourself Prior to Scaling Your Business
The first question you should be asking is do you want to scale? Bigger is not always better. If you are doing well on a smaller scale, you could just sustain your current business model and still be successful. The other point to consider is if you are prepared for the additional work and stress that comes along with transitioning your business.
The second question is, is it feasible to grow? In other words, do you have the infrastructure to grow (available inventory, access to additional capital, and manpower)? To answer this question, look at all of the components that make your business successful currently, and see if you can double it.
If the answers to these questions confirm your initial thoughts of wanting to scale, then you are ready to take these next steps.
How to Begin Scaling Your Business
- Check with your current team about whether they are also able to handle the additional workload. If anyone is uncertain and/or cannot, then it is time to look for back-ups/additional resources. This is probably something you do not want to do. It takes a lot of work to identify resources; however, if you do not identify the additional support now, you may regret it in the long term!
- Check with your funding sources about whether they are able to lend on more opportunities. Wanting to scale is one thing, but being able to do so is another. Obviously financing is a component that can be rate limiting. If your current resources are not able to provide additional funding, it is time to look for some new contacts.
- And once these two steps are resolved, it is time for the fun part: Begin hunting for opportunities! If you are passionate about growing your business, this step is probably second nature for you!
As your business continues to expand, it will face new challenges. Don’t get discouraged, as this is actually a sign of growth! It’s only when your challenges stay the same that you should be concerned.
Stay focused, take it one day at a time, and be as proactive as possible when a hurdle arises. Remember, you did not build your business overnight, so you will not be able to grow overnight either!
As a good friend of mine always says, “Be impatient with action, but patient with results.”
Have you received any other beneficial scaling advice, or do you have any helpful tips to share from your experience?
Leave a comment below!