Don’t Scale Up Without Outsourcing
Scaling too fast without outsourcing is one of the main mistakes of startups. This is why some companies go through a tough time expanding their company. The focus of scaling is to scale up at a low cost and on time. If a business scales too early and without outsourcing, then their product or service will not be prepared for growth.
Signs A Company Was Not Prepared For A Scale Up
- Getting overworked with too many projects.
- Can’t seem to stay organized..
- Not meeting department goals.
- The company might rush to get out the product.
- Not having time to use a focus group.
- Might lose track of business workflow.
- Hiring inexperienced staff due to slim company time and resources.
- Employees are making mistakes from being overworked.
- Not meeting deadlines.
- Going over budget.
- Customer service is not managed well.
- Department managers and leadership are feeling overwhelmed.
- Financial losses.
- Operations as a whole unraveling.
Strategies To Scale Up Your Business Properly
Strategy is key in growing a business. It is about increasing sales and expanding staff to maximize productivity. Here are some simple guidelines when wanting to increase sales.
- Develop an IT department. Even a small IT department can help with operations.
- Plan your team’s goal around the long-term needs of the market .
- Get staffing from an executive search company.
- Have all goals be set by budget.
- Host management training sessions.
- Give incentives for reaching goals.
Using Executive Search Company To Scale Up Business
Another way to scale up your business is to hire an executive search company.
1. Hiring Strategy
To have fast growth as a company it is imperative to have a strategic hiring method. That’s why it is in the best interest of the business to outsource staff through an executive search company. Without outsourcing a company would be forced to stretch their resources thin and productivity suffers. When you’re hiring through an executive search company you get top c-suite leaders to direct departments. These leaders have years of experience and the skills to save time. They would also have experience bringing the best performance out of their workers.
2. Department Roles
When your organization starts growing, the business model tends to need adjustments. The growth of departments is a natural result of expansion so the roles within the department have to meet the demand. It is a matter of performance reviews conducted by the c-suite leaders. With these assessments it will be easy to see the areas within each department that need more staffing. There might even be new, more challenging goals that need to be met. The goal will have set parameters that help with looking for new candidates. An executive search company will then utilize those parameters when screening the candidates.
3. Permissions And Access
When a business grows it creates new demands for the hiring process. At every stage of the expansion a safety review is needed. The permissions throughout the company have to be adjusted accordingly. When there are more users with a range of access, it becomes more challenging to protect sensitive data. To keep this organized and maintained, the right leadership has to meet with the CITO to set new guidelines for access. Then the access and permissions will be divided up among the staff according to the needs of the task.
Once the new permissions are granted certain integrations become possible to ensure successful operations. The technology of the organization will then be truly utilized by the expanding workforce. Some departments will work together to achieve success. The alignment of IT technology with business strategy is merged. The new hires from the executive search company shine in this realm.
There are 4 types of integration and in every type of integration the goal is to grow the company to new heights. Backward integration, conglomerate integration, forward vertical integration, and horizontal integration.
Backward integration is the process of when a company buys another company that is within the same market. Starbucks is an example of backward and forward integration. They own coffee growers machinery, storage, and roasting factories. Starbucks does both the manufacturing process and distribution through all Starbucks locations.
A conglomerate merger is when a company merges with another company of an entirely different industry. One example of a conglomerate merger is when the Walt Disney Company merged with the American Broadcasting Company. The most recent conglomerate mergers are known by Meta (formerly Facebook). Here is the list of acquisitions for Meta.
- Oculus VR
Forward Vertical Integration
Forward vertical integration is the process of when a company buys a company that has a supply chain. A few examples of forward vertical integration are Amazon and Netflix. They both have acquired a chain of movie theaters.
Here are some examples of horizontal integration. Walmart is the largest retailer in the United States. Walmart is not surprisingly the largest company in the world. They are a great example of vertical integration. With their supply chain and workforce they are expanding everyday. Another example of horizontal integration is when John D. Rockefeller bought oil companies to be a leading force in the oil industry.
5. Managing Compliance
At every stage of scaling up a company must meet the regulations and laws for their industry. They must stay current with the laws and maintain compliance. In some cases employees have to take short certification courses to stay compliant. A great example is the information technology industry where new systems upgrades and policies change rapidly. This applies to all fields. It is a way of life for many career executives. If a portion of the staff is slow in meeting the guidelines of compliance it would cut into the day-to-day operations. Investing the time to be compliant is worth the time for any company.
With everything in mind you can see the need to have the best leadership and staff available. To truly help a business scale up even with a sound business model you need a workforce that is dedicated and skillful. The vetting process of an executive search company can meet the task of finding the best candidates and while saving a company money. Having an expansion that stays within budget is ideal and attainable with the help of an executive search company.