The millions of small and midsized businesses (SMBs) around the world know what it feels like to be the underdog. In today’s highly competitive marketplace, many are battling larger corporations with big teams and even bigger budgets, making them a Goliath threat to SMBs’ ability to grow.
Yet statistics show that 80% of SMBs still have plans to grow and 47% expect to hire more staff. If you’re wondering how so many SMBs are growing their business in the face of strong competition and in an objectively uncertain economy, then you’re in the right place!
Today, we’ll show you the step-by-step process for taking your business to the proverbial next level.
You’ve invested your blood, sweat, and tears into making your business what it is, using the tools you have to successfully transform it from a struggling start-up to an established operation. But you’ve discovered that these tools just aren’t cutting it anymore.
It’s a frustrating place to be, so we’ve put together a list of specific, easy-to-follow steps you can take to get past the growth slump and move full steam ahead.
To start, you need to review your current capabilities. For instance, do you know if your manufacturers can handle the larger orders you’re hoping to bring in? (Good question, right?) If your current manufacturers can’t carry the load, then you’ll need to add “find new manufacturers” to your to-do list.
Here’s another good question: Are you relying on spreadsheets and aging inventory software to manage your inventory? If so, you may not know:
And we have one more question: Do you have any unresolved operational bottlenecks (e.g., in your supply chain, project management, or customer service processes)? You’ll need to identify points of congestion and fix them quickly if you want your business to move forward. If you’re handling orders manually (e.g., taking orders by phone, walking to the warehouse to check inventory levels, creating individual order forms and invoices by hand, etc.), you likely won’t be able to continue doing so while still getting products to customers on time with a larger workload.
Now, let’s say you’ve bypassed the spreadsheet stage by investing in an inventory management solution (IMS), like Cin7, that automates and simplifies your inventory, order, and fulfillment needs for you. This makes most of these questions moot and means you’re ready for step two.
Growing a business and earning plenty of cash takes, you guessed it, more cash. How much cash is dependent on your growth goals, but often, you’ll need external funding.
At Cin7, we make getting that vital funding easier with Cin7 Capital. Cin7 Capital bridges cash flow gaps using term loans, invoice financing, and lines of credit, letting you forge ahead without having to deal with the traditional (and slow) lending processes by banks and other financial institutions. Tapping into our transparent, competitive, and vetted financial sources means you can keep your operations going and growing right within the software you use every day.
In addition to having a reliable funding source, you’ll want to set some money aside in an emergency fund. This rainy day fund (along with your access to a trusted lending source right from your dashboard) will keep you afloat when you hit unexpected stockouts or catastrophic equipment failure, and you need that extra cash.
Reviewing your finances should also include monitoring your SKUs so that you can find the ones that deliver the highest profit margins and prioritize them, improving your cash flow in the process. Tying up cash in a slow moving product is avoidable when you have a tool like Cin7 ForesightAI. Powered by AI, ForesightAI predicts demand 24 months ahead, automates reordering, eliminates stockouts, and enhances warehouse space.
We hear the word “optimize” (or some version of it) being thrown about in business all the time, but what exactly does it mean? Simply put, it’s making something (e.g. a process, resources, financial health, etc.) the best it can be.
For today’s discussion, optimization means ensuring your business is running as efficiently, effectively, and profitably as possible so that you can meet your growth goals. That’s great, but what does this look in real life?
It looks like:
Now, if you lack the tools needed to streamline, standardize, and establish automated processes, then proceed to step four.
In today’s digital world, trying to scale your business without a scalable tech stack is like going skydiving without a parachute: a fatal mistake. It’s a grim picture, but it highlights the absolute necessity of implementing modern technology if you want to grow.
The most important decision when choosing a system is making sure it can and will grow with you. Generally, this means selecting a cloud-based, integrative, and flexible solution like Cin7. It not only helps you avoid silos (information segregated within different departments) but also helps you integrate with your e-commerce, accounting, and shipping partners so that you can align with and fulfill their varied requirements.
Plus, with Cin7, you can easily integrate new channels, expand your product line, add warehouses, and open more stores. Sounds like growth to us!
Like building a scalable tech stack, it’s critical you build a solid team that can handle the evolving needs of your business. Do you have enough team members today to manage your growing customer service, operations, and fulfillment needs of tomorrow? If you don’t, then you’ll need to strategically add people to your employee roster, keeping in mind that every team member will require extensive training on your software to ensure streamlined operations and a consistently positive customer experience.
Up to this point, we’ve established that prepping your business for growth requires reviewing your current capacity and identifying weak spots, understanding your cash flow needs, optimizing your operations, building a scalable tech stack, and creating a trained, reliable team. Now it’s time to see if everything you’ve done so far can withstand the rigors of scaling a business.
How? By:
Piloting new markets, channels, or product lines in a smaller, controlled way.
That new product you just knew was going to be a raging success? It flopped, but it’s ok because you tested it with fewer customers first. It’s always better to find the chinks in your armor before you go into full-fledged battle.
Stress-testing your operations with seasonal promotions or limited launches. Seasonal and limited items create a surge in demand. How well your software solution, team members, and overall operations manage these busier but short-lived bursts will tell you if you’re ready to handle long-term growth.
Using forecasting tools to model demand scenarios before committing resources. Whether we’re talking about relationships, expensive purchases, or business decisions, making a commitment is a big deal. You don’t give your heart, money, or support without knowing what you’re getting into first. That’s why using forecasting tools, such as Cin7 ForesightAI, to preview potential demand for your products is essential. Once you see possible scenarios for future demand, you can determine if committing your resources is the right decision—or not.
We’ve finally reached step seven, and it might be the most important step of them all: filter every growth-enhancing decision you make through the lens of customer satisfaction.
As you seek to grow your business, you need to think about how the growth will better your customers’ experience. Before making a decision, ask yourself, “If I do this, how will my customers benefit?” Every move should help you deliver consistent quality, delivery times, and customer support.
As to the best way to monitor how well you’re doing, we recommend you go directly to the source. Ask your customers how you’re doing. They won’t hesitate to tell you (or others) when something isn’t working, and your job is to listen carefully and respond accordingly.
Making your dream of growing your business a reality is more than possible when you prepare your business by following the handy steps we’ve provided and by choosing a solution that will support you every step of the way. Boyd Goodson, General Manager, Lofta, is glad he did.
“With Cin7, we now have a single system that’s totally scalable. We can keep track of all customer orders and needs and keep them happy. Before Cin7, we had order delays and inventory adjustments, and after Cin7, we have responsive fulfillment operations and dead-on inventory.”
Want to learn more about how Cin7 can help you grow your business? Request a free demo today!